Company A purchased $$2,800,000$ of Company B$,6\%$ bonds at par on July $1,$ Year $1,$ with interest paid semi$-$annually. Company A

determined that it should account for the bonds as an avallable$-$for$-$sale Investment. At December $31,$ Year $1,$ the Company B bonds had

a falr value of $$3,180,000.$ Company A sold the Company B bonds on July $1,$ Year $2$ for $$2,520,000.$

Required:

Prepare Company A$\text{'}$s journal entries for the following transactions:

a$.$ The purchase of the Company B bonds on July $1.$

b$.$ Interest revenue for the last half of Year $1.$

c$.$ Any year$-$end Year $1$ adjusting entries.

d$.$ Interest revenue for the first half of Year $2.$

e$.$ Any entries necessary upon sale of the Company B bonds on July $1,$ Year $2,$ including updating the falr$-$value adjustment,

recording any reclassification adjustment, and recording the sale.

Complete the following table to show the effect of the Company B bonds on Company A$\text{'}$s net income, other comprehensive

Income, and comprehensive income for Year $1,$ Year $2,$ and cumulatively over Year $1$ and Year $2.$

Complete this question by entering your answers in the tabs below.

Prepare Company A$\text{'}$s journal entries for the following transactions:

a$.$ The purchase of the Company B bonds on July $1.$

b$.$ Interest revenue for the last half of Year $1.$

c$.$ Any year$-$end Year $1$ adjusting entries.

d$.$ Interest revenue for the first half of Year $2.$

e$.$ Any entries necessary upon sale of the Company B bonds on July $1,$ Year $2,$ including updating the fair$-$value adjustment, recording

any reclassification adjustment, and recording the sale.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

whole dollars, and not in millions.