Problem 1: The following information relates to the debt securities of Houston Corporation 1) On March 1, the company purchased 6% bonds of Suzy Company having a par value of $250,000 at par plus accrued interest. Interest is payable July 1 and January 1. 2) On June 1, 8% bonds of Sara Inc. were purchased. These bonds with a par value of $500,000 were purchased at par plus accrued interest. Interest dates are September 1 and March 1 3) On July 1, semiannual interest is received. 4) On September 1, semiannual interest is received. 5) On October 1, bonds with a par value of $100,000, purchased on June1, are sold at 101 plus accrued interest. 6) On December 31, the fair value of the bonds purchased March 1 and June 1 are 98 and 103, respectively. Required: Prepare the journal entries you consider necessary, including year-end (December 31), assuming these are available for sale securities. a. Date Account Debit Credit Security Cost Fair Value Unrealized holding gains / losses Suzy Company Sara Company Total b. If Houston classified these as held-to-maturity investments, explain how the journal entries would differ from those in part (a)