Question $13-25$ marks

On January $1,2023,$ Fortress Investment Fund $($FIF$)$ purchased $7\%$ bonds, having a maturity valueof $$200,000,$ for $$217,320.$ The bonds provide the bondholders with a $5\%$ yield. They are dated

January $1,2023,$ and mature January $1,2027,$ with interest paid on January $1$ of each year. FIF's fiscal year end is December $31.$

The following schedule presents a comparison of the amortised cost $($to be Computed$)$ and fair value of the bonds at year$-$end.

Required:

a$.$ Prepare the journal entry to record the purchase of these bonds on January $1,2023$ assuming the bonds are classified as held$-$for$-$collection $($HFC$)$ investments. $(2$ marks$)$

b$.$ Prepare a bond amortization schedule through $2025.(9$marks$)$

c$.$ Prepare the journal entries related to $2023$ and $2024$ for the HFC bonds. $(4$ marks$)$

d$.$ Prepare the journal entries related to the bond for $2023$ and $2024$ assuming they are classified as trading investments. $(5$ marks$)$

e$.$ Prepare the journal entries related to the bond for $2023$ and $2024$ assuming they are classified as held$-$for$-$collection and selling. $(5$ marks$)$