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The following information relates to the debt securities investments of Waterway Company. 1. On February 1, the company purchased 10% bonds of Gibbons Co. having a par value of $324,000 at 100 plus accrued interest. Interest is payable April 1 and October 1. 2. On April 1 , semiannual interest is received. 3. On July 1,9\% bonds of Sampson, Inc. were purchased. These bonds with a par value of $186,000 were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. 4. On September 1, bonds with a par value of $60,000, purchased on February 1 , are sold at 99 plus accrued interest. 5. On October 1, semiannual interest is received. 6. On December 1 , semiannual interest is received. 7. On December 31, the fair value of the bonds purchased February 1 and July 1 are 95 and 93 , respectively. Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not ind ant manually. If no entry is required, select "No Entry" for the account titles and enter of for the amounts.) Date Account Titles and Explanation Debt investments 324000 Interest Revenue 10800 Cash Interest Revenue Jul. 1 Debt lnvestments Interest Revenue Cash Loss on Sale of Investments Debt Investments Interest Revenue Interest Revenue Dec1 Cash Interest Revenue Dec31 Interest Receivable Interest Revenue Interest Revenue Cash Interest Revenue Interest Receivable Interest Revenue (To record interest.) Unrealized Holding Gain or Loss - Equity Fair Value Adjustment (To record adjustment.)

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