Presented below is an amortization schedule related to Kathy Baker Companys 5 year, $100000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2001, for $108660.

Date	Cash received	Interest revenue	Bond premium amortization	Carry amount of bond
31/12/01	-	-		108660
31/12/02	7000	5433	1567	107093
31/12/03	7000	5354	1646	105447
31/12/04	7000	5272	1728	103719
31/12/05	7000	5186	1814	101905
31/12/16	7000	5095	1905	100000

The following schedule presents a comparison of the amortized cost and fair value of the bonds at rear end.

	31/2/12	31/3/12	31/4/12	31/5/12	31/6/12
Amortized cost	107093	105447	103719	101905	100000
Fair value	106500	107500	105650	103000	100000

Instructions:

a) Prepare the journal entry to record the purchase of these bonds on December 31, 2001 assuming the bonds are classified as held-to-maturity securities.

b) Prepare the journal entry related to the held to maturity bonds for 2002.

c) Prepare the journal entry related to the held to maturity bonds for 2004.

d) Prepare the journal entry to record the purchase of these bonds on December 31, 2001 assuming the bonds are classified as available for sale securities.

e) Prepare the journal entry related to the available for sale bonds for 2002.

f) Prepare the journal entry related to the available for sale bonds for 2004.