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

Feb.1,2017Sharapova Company common stock, $80 par,160 shares$37,200April1U.S. government bonds,10%, due April 1, 2027, interest payable April 1 and October 1,96 bonds of $1,000 par each96,000July1McGrath Company12% bonds, par $53,400, dated March 1, 2017, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 203757,672

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.)

Account Titles and Explanation

Debit

Credit

Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2017, 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.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2017

The fair values of the investments on December 31, 2017, were:

Sharapova Company common stock$28,900U.S. government bonds112,700McGrath Company bonds59,600

What entry, if any, would you recommend be made?(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.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2017

(Entry for debt investment)

(Entry for equity investment)

The U.S. government bonds were sold on July 1, 2018, for $108,000plus 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.)

Date

Account Titles and Explanation

Debit

Credit

Jul. 1, 2018

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