Presented below is an amortization schedule related to Spangler Company's 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2018, for $108,660.

Date

Cash

Received

Interest

Revenue

Bond Premium

Amortization

Carrying Amount of Bonds

12/31/18

12/31/19

12/31/20

12/31/21

12/31/22

12/31/23

$7.000

7.000

7,000

7,000

7.000

$5.433

5.354

5.272

5.186

5.095

$1.567

1,646

1,728

1,814

1,905

$108,660

107,093

105,447

103,719

101,905

100.000

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

12/31/19

$107.093

106.500

12/31/20

$105.447

107.500

12/31/21

12/31/22

12/31/23

S103.719

105.650

$101,905

103.000

$100.000

100,000

Amortized cost

Fair value

Instructions

1. 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.
2. Prepare the journal entry(ies) related to the held-to-maturity bonds for 2019.
3. Prepare the journal entry(ies) related to the held-to-maturity bonds for 2021.
4. Prepare the journal entry(ies) to record the purchase of these bonds, assuming they are classified as available-for-sale.
5. Prepare the journal entry(ies) related to the available-for-sale bonds for 2019.
6. Prepare the journal entry(ies) related to the available-for-sale bonds for 2021.