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Presented below is an amortization schedule related to Ayayai Companys 5-year, $130,000 bond with a 6% interest rate and a 4% yield, purchased on December

Presented below is an amortization schedule related to Ayayai Companys 5-year, $130,000 bond with a 6% interest rate and a 4% yield, purchased on December 31, 2018, for $141,575.

Date

Cash Received

Interest Revenue

Bond Premium Amortization

Carrying Amount of Bonds

12/31/18

$141,575

12/31/19

$7,800 $5,663 $2,137 139,438

12/31/20

7,800 5,578 2,222 137,216

12/31/21

7,800 5,489 2,311 134,905

12/31/22

7,800 5,396 2,404 132,501

12/31/23

7,800 5,299 2,501 130,000

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

$139,438 $137,216 $134,905 $132,501 $130,000

Fair value

$138,900 $139,500 $137,000 $133,600 $130,000

(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 related to the held-to-maturity bonds for 2019.
(c) Prepare the journal entry related to the held-to-maturity bonds for 2021.
(d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale.
(e) Prepare the journal entries related to the available-for-sale bonds for 2019.
(f) Prepare the journal entries related to the available-for-sale bonds for 2021.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a)

choose a transaction date Dec. 31, 2018Dec. 31, 2019Dec. 31, 2021

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(b)

choose a transaction date Dec. 31, 2018Dec. 31, 2019Dec. 31, 2021

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(c)

choose a transaction date Dec. 31, 2018Dec. 31, 2019Dec. 31, 2021

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(d)

choose a transaction date Dec. 31, 2018Dec. 31, 2019Dec. 31, 2021

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(e)

choose a transaction date Dec. 31, 2018Dec. 31, 2019Dec. 31, 2021

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

(To record interest revenue.)

enter an account title to record adjustment

enter a debit amount

enter a credit amount

enter an account title to record adjustment

enter a debit amount

enter a credit amount

(To record adjustment.)

(f)

choose a transaction date Dec. 31, 2018Dec. 31, 2019Dec. 31, 2021

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

(To record interest revenue.)

enter an account title to record adjustment

enter a debit amount

enter a credit amount

enter an account title to record adjustment

enter a debit amount

enter a credit amount

(To record adjustment.)

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