Reference no: EM132771482

At December 31, 20x3, Campbell Inc., a public company, holds the following investments on its balance sheet (all were purchased in 20x3):

Classification

                                 Purchase Price               Market Value at December 31, 20x3
Harris Inc. FVTOCI       $ 350,000                         $ 325,000
Sterling Co. FVTOCI       675,000                            450,000
Total Investments        $ 1,025,000                          $775,000

Campbell entered into the following transactions during the year ended December 31, 20x4:

• Purchase of 10 year bonds in Pryce Inc. for $560,000. The face value of the bonds is $600,000. The purchase took place on July 1, 20x4 and the bonds pay interest semi-annually on June 30 and Dec 31. The coupon rate of the bonds is 4%. This investment is expected to be held for the full ten years to realize the interest and principal repayment of the bonds
• Sale of investment of Sterling Co. for $90,000At December 31, 20x4, the investments had the following fair values:

Harris Inc.     $ 425,000
Pryce Inc.       580,000

Required -

Problem 1: Prepare all journal entries related to the above for the years ended December 31, 20x3 and December 31, 20x4.