Skysong Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no

credits, with the following descriptions.

Feb. $1,2025$ Sharapova Company common stock, $$90$ par, $180$ shares

April $1,$ U$.$S$.$ government bonds, $10\%,$ due April $1,2035,$ interest payable April $1$ and October $1,108$ bonds of

$$1,000$ par each

July $1$

McGrath Company $12\%$ bonds, par $$49,700,$ dated March $1,2025,$ purchased at $104$ plus accrued

interest, interest payable annually on March $1,$ due March $1,2045$

$$35,280$

$108,000$

$53,676$

$($a$)$

Your answer is correct.

Prepare entries necessary to classify the amounts into proper accounts, assuming that the debt securities are classified as

available$-$for$-$sale. Sharapova has $200,000$ shares outstanding. $($List all debit entries before credit entries. Credit account titles ar

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.$)$

$($b$)$

Your answer is correct.

Prepare the entry to record the accrued interest and the amortization of premium on December $31,2025,$ using the straight$-$line

method. $($List all debit entries before credit entries. 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. Round answers to $0$ decimal places,

e$.$g$.1,225.)$

$($c$)$

Your answer is partially correct.

The fair values of the investments on December $31,2025,$ were:

What entries, if any, would you recommend be made? $($List all debit entries before credit entries. 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. Round answers to $0$ decimal places, e$.$g$.1,225.)$

$($Entry for debt investment$)$