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05-06-2023
Business

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Colah Company purchased $1,000,000 of Jackson, Inc., 5\% bonds at par on July 1, 2021, with interest paid semi-annually. Colah etermined that it should account for the bonds as an available-for-sale investment. At December 31,2021 , the Jackson bonds had a air value of $1,200,000. Colah sold the Jackson bonds on July 1,2022 for $900,000.
Required: Prepare Colah's journal entries.

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