E17.3B (LO 1) (Entries for Held-to-Maturity Securities) On January 1, 2020, Hummer Company purchased 5% bonds, having a maturity value of $1,500,000 for $1,286,814. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2020, and mature January 1, 2030, with interest receivable June 30 and December 31 of each year. Hummer Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Instructions (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the first 3 years of a bond amortization schedule. (c) Prepare the journal entries to record the interest received and the amortization for 2020. E17.4B (LO 1) (Entries for Available-for-Sale Securities) Assume the same information as in E17.3B except that the securi- ties are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows: Instructions 2020 $1,290,000 2023 2021 2022 $1,275,000 $1,260,000 2024 $1,350,000 $1,410,000 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest received and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021