1. (2 points) Swifty Company purchased, on January 1, 2017, as a held-to-maturity investment, $100,000 of the 10%, 5-year bonds of Chester Corporation for $107,985, which provides an 8% retum. Prepare Swifty's journal entries for: (a) the purchase of the investment (b) the receipt of annual interest and discount amortization. Assume effective interest amortization is used. 2. (3 points) Sheffield Corporation purchased trading investment bonds for $108,000 at par. At December 31, Sheffield received annual interest of $5,160, and the fair value of the bonds was $112,300. Prepare Sheffield's journal entries for: (a) the purchase of the investment (b) the interest received (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)