B. Investment in AFS Debt Instruments Your client has the following portfolio of Available for Sale (AFS) bonds on Dec. 31,2018: Amortized Market Cost Value Able bonds, 100,000 maturity, 5% stated rate, 5 years 97,865 98,000 to maturity, sold to yield 5.5 % Baker bonds, $100,000 maturity, 6% stated rate, 7 years 102,841 102,000 to maturity, sold to yield 5.5% Total 200,706 200,000 Prepare any required adjusting entry for Dec. 31, 2018 Debit Credit Calculate effective interest revenue and amortization for 2019 Able Baker Here is the portfolio of investments as of December 31, 2019 Amortized Cost Market Value 97,000 Able bonds, 100,000 maturity, 5% stated rate, 4 years to maturity, sold to yield 5.5 % Baker bonds, $100,000 maturity, 6% stated rate, 6 years to maturity, sold to yield 5.5% Total 100,500 197,500 Prepare any required adjusting entry for Dec. 31, 2019 Calculation: Entry B. Investment in AFS Debt Instruments Your client has the following portfolio of Available for Sale (AFS) bonds on Dec. 31,2018: Amortized Market Cost Value Able bonds, 100,000 maturity, 5% stated rate, 5 years 97,865 98,000 to maturity, sold to yield 5.5 % Baker bonds, $100,000 maturity, 6% stated rate, 7 years 102,841 102,000 to maturity, sold to yield 5.5% Total 200,706 200,000 Prepare any required adjusting entry for Dec. 31, 2018 Debit Credit Calculate effective interest revenue and amortization for 2019 Able Baker Here is the portfolio of investments as of December 31, 2019 Amortized Cost Market Value 97,000 Able bonds, 100,000 maturity, 5% stated rate, 4 years to maturity, sold to yield 5.5 % Baker bonds, $100,000 maturity, 6% stated rate, 6 years to maturity, sold to yield 5.5% Total 100,500 197,500 Prepare any required adjusting entry for Dec. 31, 2019 Calculation: Entry