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

Feb. $1,2025$ Sharapova Company common stock, $$110$ par, $220$ shares $$36,300$

April $1$ U$.$S$.$ government bonds, $12\%,$ due April $1,2035,$ interest payable April $1$ and October $1,108$ bonds of $$1,000$ par each $108,000$

July $1$ McGrath Company $12\%$ bonds, par $$53,500,$ dated March $1,2025,$ purchased at $104$ plus accrued interest, interest payable annually on March $1,$ due March $1,204557,780$

$($a$)$

Your answer is correct.

Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as available$-$for$-$sale. Sharapova has $200,000$ shares outstanding. $($List all debit entries before credit entries. 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 and Explanation Debit Credit

enter an account titleCorrect answer enter a debit amountCorrect answer enter a credit amountCorrect answer

enter an account titleCorrect answer enter a debit amountCorrect answer enter a credit amountCorrect answer

enter an account titleCorrect answer enter a debit amountCorrect answer enter a credit amountCorrect answer

enter an account titleCorrect answer enter a debit amountCorrect answer enter a credit amountCorrect answer

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List of Accounts

Attempts: $2$ of $5$ used

$($b$)$

$$ Your Answer

$$ Correct Answer $($Used$)$

Prepare the entry to record the accrued interest and the amortization of premium on December $31,2025,$ using the straight$-$line method. $($List all debit entries before credit entries. 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. Round answers to $0$ decimal places, e$.$g$.1,225.)$

Date Account Titles and Explanation Debit Credit

Dec. $31,2025$ enter an account title for the journal entry on December $31,2025$ enter a debit amount enter a credit amount

enter an account title for the journal entry on December $31,2025$ enter a debit amount enter a credit amount

enter an account title for the journal entry on December $31,2025$ enter a debit amount enter a credit amount

$($c$)$

The fair values of the investments on December $31,2025,$ were:

Sharapova Company common stock $$32,100$

U$.$S$.$ government bonds $116,400$

McGrath Company bonds $59,100$

What entries, if any, would you recommend be made? $($List all debit entries before credit entries. 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. Round answers to $0$ decimal places, e$.$g$.1,225.)$

Date Account Titles and Explanation Debit Credit

Dec. $31,2025$ enter an account title to record entry for debt investment on December $31,2025$ enter a debit amount enter a credit amount

enter an account title to record entry for debt investment on December $31,2025$ enter a debit amount enter a credit amount

$($Entry for debt investment$)$

enter an account title to record entry for equity investment on December $31,2025$ enter a debit amount enter a credit amount

enter an account title to record entry for equity investment on December $31,2025$ enter a debit amount enter a credit amount

$($Entry for equity investment$)$

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List of Accounts

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Attempts: $0$ of $5$ used

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$($d$)$

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