P17.3 (LO 1, 2) (Debt and Equity Investments) Cardinal Paz Corp. carries an account in its gen- eral ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. $ 37,400 Feb. 1, 2020 April 1 110,000 Sharapova Company common stock, $100 par, 200 shares U.S. government bonds, 11%, due April 1, 2030, interest payable April 1 and October 1, 110 bonds of $1,000 par each McGrath Company 12% bonds, par $50,000, dated March 1, 2020, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2040 July 1 54,000 Instructions (Round all computations to the nearest dollar.) a. Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt secu- rities are classified as available-for-sale. Problems 17-61 b. Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2020, using the straight-line method. c. The fair values of the investments on December 31, 2020, were: Sharapova Company common stock U.S. government bonds McGrath Company bonds $ 31,800 124,700 58,600 What entry or entries, if any, would you recommend be made? d. The U.S. government bonds were sold on July 1, 2021, for $119,200 plus accrued interest. Give the proper entry