Four transactions involving investments in marketable debt securities classified as trading follow.

(1) On July 1, purchased US Treasury Bonds for $407,000 in cash. The bonds have a face value of $400,000 and pay interest semi-annually (June 30 and December 31) at an annual rate of 4.00%.

(2) Received cash interest payment of $8,000 on December 31.

(3) Year-end market price of bonds is $411,000.

(4) Received cash interest payment of $8,000 and sold all bonds on June 30 for $408,000.

a. Prepare journal entries to record the four transactions.

b. Post the journal entries from a to their respective T-accounts.

c. Record each of the transactions from a in the financial statement effects template.

d. Using the same transaction information as above and assuming the investments in marketable securities are classified as available-for-sale

(i) Prepare journal entries to record the transactions,

(ii) Post the journal entries to their respective T-accounts,

(iii) Record each of the transactions in the financial statement effects template.