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

(A) Feb.1,2017Sharapova Company common stock, $100 par,200 shares$34,500April1U.S. government bonds,11%, due April 1, 2027, interest payable April 1 and October 1,108 bonds of $1,000 par each108,000July1McGrath Company12% bonds, par $54,100, dated March 1, 2017, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 203758,428 - Solved See 17-3.1

(B) What are the entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale. (See 17-3.2)

(C) What is the entry to record the accrued interest and the amortization of premium on December 31, 2017, using the straight-line method (See 17-3.3)

(D) What entry, if any, would you recommend be made? (See

17-3.4)

(E) The U.S. government bonds were sold on July 1, 2018, for $121,600plus accrued interest. Give the proper entry. (See 17-3.4)