Presented below is an amortization schedule related to Mets Companys 5-year, $100,000 bond with a 5% interest rate and a 6% yield, purchased on December 31, 2020, for $95,788.

				Carrying
		Interest		Value of
Date	Cash	Revenue	Investment	Investment
1/1/2021				95788
12/31/2021	5000	5747.27	747	96535
12/31/2022	5000	5792.10	792	97327
12/31/2023	5000	5839.63	840	98167
12/31/2024	5000	5890.01	890	99057
12/31/2025	5000	5943.41	943	100000

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

12/31/21 12/31/22 12/31/23 12/31/24 12/31/25

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

Fair value $97,250 $97,100 $97,375 $99,500 $100,000

Instructions

(a) Prepare the journal entry to record the purchase of these bonds on December 31, 2020, assuming the bonds are classified as held-to-maturity securities.

(b) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2021.

(c) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2023.

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

(e) Prepare the journal entry(ies) related to the available-for-sale bonds for 2021.

(f) Prepare the journal entry(ies) related to the available-for-sale bonds for 2023.