On 1/1/18, Apex Corp. purchased $100,000 of Colossal Corp. Bonds. The Bonds pay 7% interest yearly (on 12/31) and have a remaining life of 10 years. Smith purchased the bonds at a price reflecting a 6% market rate. Apex uses the effective interest method. At the end of the year the bonds have a fair value of $95,000.

1. Record any necessary 12/31/18 entry or entries for the bond investment, which is classified as held to maturity. How would the bonds be classified on the Apex corp. balance sheet?
2. Record any entries that would differ from those in #1, if the bonds were instead classified available for sale.