Feb. 1, 2014 Sharapova Company common stock, $111 par, 222 shares $43,300

April 1 U.S. government bonds, 12%, due April 1, 2024, interest

payable April 1 and October 1, 113 bonds of $1,000 par each $113,000

July 1 McGrath Company 12% bonds, par $54,200, dated March 1,

2014, purchased at 104 plus accrued interest, interest payable

Annually on March 1, due March 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.)

(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.)

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

Sharapova Company common stock $32,460

U.S. government bonds $145,530

McGrath Company bonds $66,700

(d) The U.S. government bonds were sold on July 1, 2015, for $119,740 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.)