Practice Problem 1 (Part Level Submission) Cullumber Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Cullumber, whose fiscal year ends on December 31. 2020 Jan. 1 Purchased at face value $1,597,000 of Javier Nursing Centers, Inc., 10-year, 5% bonds dated January 1, 2017, directly from Javier. Accrual of interest at year-end on the Javier bonds. Dec. 31 (Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2020, to December 31, 2022.) 2023 Jan. 1 Jan. 1 Received the annual interest on the Javier bonds. Sold $798,500 Javier bonds at 105. Accrual of interest at year-end on the Javier bonds. Dec. 31 Date Account Titles and Explanation Debit Credit Cullumber Carecenters Inc. Balance Sheet (Partial) December 31, 2020 Jan. 1, 2020 Debt Investments 1597000 Cash 1597000 Current Assets Dec. 31, 2020 Interest Receivable 79850 Interest Receivable 39925 Interest Revenue 79850 Investments Jan. 1, 2023 Cash 79850 Debt Investments, at fair value 1756700 Interest Receivable 79850 (To record the receipt of annual interest on Javier bonds) X Jan. 1, 2023 Cash 838425 Total Current Assets 199625 Debt Investments 798,500 Gain on Sale of Debt Investments 39925 (To record the sale of Javier bonds) Dec. 31, 2023 Interest Receivable 39925 Interest Revenue 39925