Presented below is an amortization schedule related to Spangler Company's 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2010, for $108,660.
![421_Journal entry to record the purchase.PNG](https://secure.tutorsglobe.com/CMSImages/421_Journal%20entry%20to%20record%20the%20purchase.PNG)
The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end.
![744_Journal entry to record the purchase1.PNG](https://secure.tutorsglobe.com/CMSImages/744_Journal%20entry%20to%20record%20the%20purchase1.PNG)
Instructions
(a) Prepare the journal entry to record the purchase of these bonds on December 31, 2010, assuming the bonds are classified as held-to-maturity securities.
(b) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2011.
(c) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2013.
(d) Prepare the journal entry(ies) to record the purchase of these bonds, assuming they are classified as available-for-sale.
(e) Prepare the journal entry(ies) related to the available-for-sale bonds for 2011.
(f) Prepare the journal entry(ies) related to the available-for-sale bonds for2013.