Available-for-Sale Securities Holly Company invests its excess cash in marketable securities. At the beginning of 2019, it had the following portfolio of investments in available-for-sale debt securities.

Amortized 12/31/18 Security Par Value Cost Fair Value

Igor Company 5% bonds, maturing on Dec. 31, 2028 $10,000 $ 8,400 $ 9,400 Ozone Company 6% bonds, maturing on Dec. 31, 2023 $20,000 23,100 21,700 Totals $31,500 $31,100

During 2019, the following transactions occurred:

Mar. 31 Purchased Union Company 8% bonds with a face value of $10,000 for $10,000 plus accrued interest; interest is payable on the bonds each June 30 and December 31. Mar. 31 Sold the Ozone Copany investment for $22,000 plus accrued interest. June 30 Received the semiannual interest on the Union Company bonds. Dec. 31 Received theannual interest on theIgor Company bonds and the semiannual interest on the Union Company bonds.

The December 31 closing market prices were as follows: Igor Company bonds, $9,000; and Union Company 8% bonds, $10,100. Holly uses the straight-line method to amortize any discounts or premiums.

Required: 1. Prepare journal entries to record the preceeding information. 2. Show what is reported on Holly's 2019 income statement. 3. Assumin the investment in Igor Company bonds is considered to be a current asset and the investment in Union Company bonds is considered to be a noncurrent assest show how all the items are reported on Holly's December 31, 2019, balance sheet. 4. What is Holly's unrealized holding gain or loss on available-for-sale securities in 2019?

and DeeelliDcl DI P13-10 Available-for-Sale Securities Holly Company invests its excess cash in marketable securities. At the LO 13.4 2019, it had the following portfolio of investments in available-for-sale debt securities: September 30, 2019; Amortized 12/31/18 Fair Value $9,400 21,700 31,100 Par Value Cost Security $ 8,400 Igor Company 5% bonds, maturing on Dec. 31, 2028 Ozone Company 6% bonds, maturing on Dec. 31, 2023 $10,000 $20,000 23,100 $31,500 $ Totals During 2019, the following transactions occurred Mar. 31 Purchased Union Company 8% bonds with a face value of $10,000 for $10,000 plus accrued interest, interest is payable on the bonds each June 30 and December 31 Sold the Mar. 31 Ozone Company investment for $22,000 plus accrued interest bonds. Dec. 31 Received the annual interest on the lgor Company bonds and the semiannual interest on the Union Company bonds. The December 31 closing market prices were as follows: Igor Company bonds, $9,000; and Union Company 8% bonds, $10,100. Holly uses the straight-line method to amortize any discounts or premiums. Required: 1. Prepare journal entries to record the preceding information 2. Show what is reported on Holly's 2019 income statement. 3. Assuming the investment in Igor Company bonds is considered to be a current asset and the investment in Union Company bonds is considered to be a noncurrent asset, show how all the items are reported on Holly's December 31,2019, balance sheet. What is Holly's unrealized holding gain or loss on available-for-sale securities in 2019: 4