On January 1, 2017, Novetel Company purchased $85,000, 8% bonds of Avila Co. for $90077. The bonds were purchased to yield an effective interest rate of 10% Interest is payable semiannually on July 1 and January 1.The bonds mature on January 1, 2022. Novetel plans to hold the bonds till maturity. On January 1, 2019, after receiving interest, Novetel Company sold the bonds for $75,000 to meet liquidity needs. Instructions: a) Prepare the journal entry to record the purchase of bonds on January 1. b) Prepare the amortization schedule for the bonds (only two years) c) Prepare the journal entry to record the semiannual interest on July 1,2017 and December 31, 2017. d) Prepare the journal entry to record the sale of the bond on January 1, 2019. e) Assume that Novetel bought the bonds as trading. If the fair value of Avila bonds is 70,000 on December 31, 2017 and 60,000 on December 31, 2018, prepare the necessary adjusting entries