On November 1, 2018 Smith Inc. purchased $300,000 face value of X-Tech Inc.'s 9% bonds at a market price of 100 (bonds were purchased at par value). The bonds were originally issued in 2017 and mature in 2027. The bonds pay interest on October 31 and April 30 each year. Barclays expects to sell the bonds in the near future, so this investment is classified as "Trading." 103 98 Barclays eventually sells the bonds on May 1, 2019 at a market price of: At 12/31/18 the market price of the bonds is At 3/31/19 the market price of the bonds is Barclays has a December 31 fiscal year-end and reports on a quarterly basis. 101 Required a) Provide the journal entries Barclays uses to record the purchase of this investment, any fair value adjustments, and any interest revenue over the investment holding period (Hint -- on April 30 Barclays receives interest for 6 month period but since Barclays reports on a quarterly basis, it needs to record "interest receivable" at quarter end) b) What is the combined effect of this investment on the income statements for Q4, 2018, and Q1 and Q2 of 2019? (Hint -- this includes both interest revenue and he fair value gain or loss booked in quarter) c) What is the combined effect of this investment on the income statements for Q4, 2018, and Q1 and Q2 of 2019 if the investment had been categorized as available-for-sale? (Hint -- fair value gains and losses are "parked" in OCI on the balance sheet over the investment holding period and all go to income statement in the period in which the investment is sold)