P17.1 (LO 1) (Debt Securities) Presented below is an amortization schedule related to Spangler Company's S-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2018, for $108,660. Cash Interest Bond Premium Carrying Amount Date Received Revenue Amortization of Bonds 12/31/18 $108,660 12/31/19 $7,000 $5,433 $1,567 107,093 12/31/20 7,000 5,354 1,646 105,447 12/31/21 7.000 5,272 1,728 103,719 12/31/22 7,000 : 5,186 1,814 101,905 12/31/23 7,000 5,095 1,905 100,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Amortized cost $107,093 $105,447 $103,719 $101,905 $100,000 Fair value 106,500 107,500 105,650 103,000 100,000 Instructions a. Prepare the journal entry to record the purchase of these bonds on December 31, 2018, assuming the bonds are classified as held-to-maturity securities. b. Prepare the journal entry(ies) related to the held-to-maturity bonds for 2019. c. Prepare the journal entry(ies) related to the held-to-maturity bonds for 2021. d. Prepare the journal entry(ies) to record the purchase of these bonds, assuming they are clas- sified as available-for-sale. e. Prepare the journal entry(ies) related to the available-for-sale bonds for 2019. f. Prepare the journal entry(ies) related to the available-for-sale bonds for 2021