HW 17-7-Debt Securities AS CORRECTED Presented below is an amortization schedue related to the Orlando Magic's 5 year, $200,000 bond with a 5% interest rate and a 5% yield, purchased on December 31, 2018 for $191,575. Bond Discount Carrying Amount Date Cash Received Interest Revenue Amortization of Bond 12/31/2018 191,575 12/31/2019 10,000 11,495 1,495 193,070 12/31/2020 10,000 11,584 1,584 194,654 12/31/2021 10,000 11,679 1,679 196,333 12/31/2022 10,000 11,780 1,780 198,113 12/31/2023 10,000 11,887 1,887 200,000 Instructions (a) Prepare the journal entry at the date of the bond purchase assuming the bonds are classified as held-to- maturity securities. (a) Record purchase of Investment December 31, 2018 Debt Investments Cash 191,575 191,575 Instructions (b) Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020 related to the held-to-maturity bonds. (b) Record interest revenue and amortization at December 31, 2015 Cash 10,000 Debt investments 1,495 Interest Revenue 11,495 Instructions (c) Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021 related to the held-to-maturity bonds. (c) Record interest revenue and amortization at December 31, 2021 Cash 10,000 Debt investments 1,679 11,679 (d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale securities. (d) Record purchase of Investment December 31, 2018 Debt Investments Cash 191,575 191,575 (e) Prepare the journal entry(ies) related to the available for sale bonds for 2019 assuming the bonds had a fair value of $194,500. (e) (f) Prepare the journal entry(ies) related to the availabe for sale bonds for 2021 assuming the bonds have a fair value of $195,750 and a fair value adjustment account with a credit balance of $ 454 before adjustment. (f)