Please solve D$.$

Following the three$-$step approach, prepare the journal entries for the sale of the bond on December $31,2024.$ Include the

reclassification of unrealized gains and losses to net income. $($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$

for the amounts. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,275.$

Account Titles and Explanation

$($To record fair value adjustment to date of disposal$)$

FV$-$OCI Investments

$($To record disposal of the bond$)$

Loss on Disposal of Investments FV$-$OCI

Unrealized Gain or Loss $-$ OCl

$($To reclassify accumulated unrealized gains and losses from OCI to

net income$)$

eTextbook and MediaOn July $1,2023,$ Concord Aggregates Ltd$.$ purchased $6\%$ bonds with a maturity value of $$170,000$ for $$176,095.$ The bonds provide

the bondholders with a $5\%$ yield. The bonds mature four years later, on July $1,2027,$ with interest receivable June $30$ and December

$31$ of each year. Concord uses the effective interest method to allocate unamortized discount or premium. The bonds are accounted

for using the FV$-$OCI model with recycling. Concord has a calendar year end. The fair value of the bonds at December $31,2023$ and

$2024,$ was $$175,635$ and $$173,819,$ respectively. Assume fair value adjustments are recorded at year end only. Immediately after

collecting interest on December $31,2024,$ the bonds were sold for $$173,819.$

$($a$)$

Your answer is correct.

Prepare the journal entry at the date of the bond purchase. $($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$

for the amounts. List debit entry before credit entry. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit

July $1,$

$2023$

FV$-$OCI Investments

eTextbook and Media

List of Accounts

$($b$)$