Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.

Feb. 1 2014	Sharapove Co. common stock, $119 par, 238 shares	$39,400
Apr 1	US gov bonds, 12%, due Apr 1, 2024, interest payable Apr 1 & Oct 1, 112 bonds of !1,000 par each	$112,000
Jul 1	McGrath Co 12% bonds, par $54,200, dated Mar 1, 2014 purchased at 104 plus accrued interest, interest payable annually on Mar 1, due Mar 1, 2034	$58,536

(a) Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles & Explanation	Debit	Credit

(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2014, using the straight-line method. (Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles & Explanation	Debit	Credit
Dec 31, 2014

(c) The fair values of the investments on December 31, 2014, were:

Sharapova Co common stock	$35,840
US Government bonds	$146,960
McGrath Co bonds	$63,050

What entry, if any, would you recommend be made? (Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles & Explanation	Debit	Credit
Dec 31, 2014

(d) The U.S. government bonds were sold on July 1, 2015, for $119,730 plus accrued interest. Give the proper entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles & Explanation	Debit	Credit
Jul 1, 2015