Presented below is an amortization schedule related to Met's Company's 5-year, $100,000 bond with a 5% interest rate and a 6% yield, purchased on December 31, 2010, for $95,788.

Date Cash Interest Revenue Investment Carrying Value of Investment

1/1/2011

12/31/2011 5000 5747.27 747 95788

12/31/2012 5000 5792.10 792 96535

12/31/2013 5000 5839.63 840 97327

12/31/2014 5000 5890.01 890 99057

12/31/2015 5000 5943.41 943 100000

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

12/31/2011 12/31/12 12/31/13 12/31/14 12/31/15

Amortized Cost: $96,535 $97,327 $98,167 $99,057 $100,000

Fair Value: $97,250 $97,100 $97,100 $99,500 $100,000

Instructions:

(A) Prepare the journal entry to record the purchase of these bonds on December 31,2010, assuming the bonds are classified as held-to-maturity securities.

(B) Prepare the journal entry or entries related to the held-to-maturity bonds for 2011.

(C) Prepare the journal entry or entries related to the held-to-maturity bonds for 2013.

(D) Prepare the journal entry or entries to record the purchase of these bonds, assuming they are classified as available-for-sale.

(E) Prepare the journal entry or entries related to the available-for-sale bonds for 2011.

(F) Prepare the journal entry or entries related to the available-for-sale bonds for 2013.