Question 7 Presented below is an amortization schedule related to Oriole Company's 5-year, $180,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2015, for $195,586 Cash Received Revenue Amortization Bond Premium Carrying Amount of Bonds Interest Date $195,586 192,765 189,803 186,693 183,428 180,000 12/31/15 12/31/16 $12,600 12,600 12,600 12,600 12,600 12/31/17 12/31/18 12/31/19 12/31/20 $9,779 9,638 9,490 9,335 9,172 $2,821 2,962 3,110 3,265 3,428 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end: 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 $192,765 $189,803 $186,693$183,428 $180,000 $192,200 $191,800$188,500 $184,500 $180,000 Amortized cost Fair value (a) (b) (c) (d) (e) (f) Prepare the journal entry to record the purchase of these bonds on December 31, 2015, assuming the bonds are classified as held-to-maturity securities Prepare the journal entry related to the held-to-maturity bonds for 2016 Prepare the journal entry related to the held-to-maturity bonds for 2018 Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale Prepare the journal entries related to the available-for-sale bonds for 2016 Prepare the journal entries related to the available-for-sale bonds for 2018 (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No Date Account Titles and Explanation Debit Credit (To record interest revenue.)