Exercise $12-12($Algo$)$ Available$-$for$-$sale securities; financial statement effects $[$LO$12-1,12-4]$

Colah Company purchased $$2,700,000$ of Jackson, Incorporated, $5\%$ bonds at par on July $1,2024,$ with interest paid semi$-$annually. Colah determined that it should account for the bonds as an available$-$for$-$sale investment At December $31,2024,$ the Jackson bonds had a fair value of $$3,070,000.$ Colah sold the Jackson bonds on July $1,2025$ for $$2,430,000.$

Required:

Prepare Colah's journal entries for the following transactions:

a$.$ The purchase of the Jackson bonds on July $1.$

b$.$ Interest revenue for the last half of $2024.$

c$.$ Any year$-$end $2024$ adjusting entries.

d$.$ Interest revenue for the first half of $2025.$

e$.$ Any entries necessary upon sale of the Jackson bonds on July $1,2025,$ including updating the fairvalue adjustment, recording any reclassification adjustment, and recording the sale.

Complete the following table to show the effect of the Jackson bonds on Colah's net income, other comprehensive income, and comprehensive income for $2024,2025,$ and cumulatively over $2024$ and $2025.$

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

Prepare Colah's journal entries for the following transactions:

a$.$ The purchase of the Jackson bonds on July $1.$

b$.$ Interest revenue for the last half of $2024.$

c$.$ Any year$-$end $2024$ adjusting entries.

d$.$ Interest revenue for the first half of $2025.$

e$.$ Any entries necessary upon sale of the Jackson bonds on July $1,2025,$ 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.

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