Windsor 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, $$110$ par, $220$ shares $$36,300.$

April $1$ U$.$S$.$ government bonds, $12\%,$ due April $1,2035,$ interest payable April $1$ and October $1,108$ bonds of $$1,000$ par each $$108,000.$

July $1$ McGrath Company $12\%$ bonds, par $$53,500,$ dated March $1,2025,$ purchased at $104$ plus accrued interest, interest payable annually on March $1,$ due March $1,2045$; $$57,780.$

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.

Account Titles and Explanation

Equity Investments $36,300$ Debit

Debt Investments $163,640$ Debit

Interest Revenue $2,140$ Debit

Investments $202,080$ Credit

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

Date Account Titles and Explanation Debit Credit

Dec $31,2025$ Interest Receivable $8590$

Debt Investments $54$

Interest Revenue $8536$

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

Sharapova Company common stock $32,100$

U$.$S$.$ government bonds $116,400$

McGrath Company bonds $59,100$

What entries, if any, would you recommend be made?

Dec $31,2025$ Fair Value Adjustment Debit $11,914$

Unrealized holding gain$/$loss equity Credit $11,914$

Unrealized holding gain$/$loss income Debit $4,200$

Fair Value Adjustment Credit $4,200$

D$.$ The U$.$S$.$ government bonds were sold on July $1,2026,$ for $$111,200$ plus accrued interest. Give the proper entry.