Feb. $1,2025$ Sharapova Company common stock, $$90$ par, $180$ share

April $1,$ U$.$S$.$ government bonds, $10\%,$ due April $1,2035,$ interest payable April $1$ and October $1,108$ bonds of

July $1$ McGrath Company $12\%$ bonds, par $$49,700,$ dated March $1,2025,$ purchased at $104$ plus accrued

$$35,280$

$108,000$

$53,676$

$($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

for the amounts,

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Attempts: $3$ of $5$ used

$($b$)$

Prepare the entry to record the accrued interest and the amortization of premium on December $31,2025,$ using the straight$-$lin

method. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent

method. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent

manually. If

$($c$)$

Your Answer Correct Answer

Your answer is correct.

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

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$.1,225.)$

The U$.$S$.$ government bonds were sold on July $1,2026,$ for $$129,400$ plus accrued interest. Give the proper entry. $($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

entries before credit entries. Credit account titles are automatically indented wh required, select $"$No Entry" for the account titles and enter $0$ for the a mounts.$)$