Please do no repost already posted answer to this problem! Please show all calculations and answers clearly

Please answer both parts to problem below. Please be sure to show all calculations and answers to both parts!!

At the end of 2018, Terry Company prepared the following schedule of investments in available-for-sale debt securities (all of which were acquired at par value):

Cumulative

Company

Amortized Cost

12/31/18 Fair Value

Change in Fair Value

Morgan Company $35,000 $34,200 $ (800)

Nance Company 50,000 53,100 3,100

Total $85,000 $87,300 $2,300

During 2019, the following transactions occurred:

July 1 Purchased Oscar Company debt securities with a par value of 100,000 for $98,000. The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest semiannually on July 1 and December 31. Terry uses the straight-line method to amortize any discounts or premiums.

Oct. 11 Sold all of the Morgan Company securities for $33,000 plus interest of $1,300. Dec. 31 Received interest of $6,000 on the Nance Company and Oscar Company debt securities, and the following year end total market values were available: Nance Company debt securities, $55,000; Oscar Company debt securities, $96,000.

Instructions:

1. Prepare journal entries to record the preceding information.

2. Show how the preceding items are reported on Terrys December 31, 2019, balance sheet. Assume all investments are noncurrent.