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question 9

Presented below is an amortization schedule related to Nash Company's 5 -year, $150,000 bond with a 6% interest rate and a 4% yield, purchased on December 31, 2018, for $163,356. The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. (a) Prepare the journal entry to record the purchase of these bonds on December 31, 2018, assuming the bonds are classified as held-to-maturity securities. (b) Prepare the journal entry related to the held-to-maturity bonds for 2019. (c) Prepare the journal entry related to the held-to-maturity bonds for 2021. (d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale. (e) Prepare the journal entries related to the available-for-sale bonds for 2019. (f) Prepare the journal entries related to the available-for-sale bonds for 2021 . (Credit account titles are automatically indented when amount is entered. Do not indent mant is required, select "No Entry" for the account titles and enter 0 for the amounts.) \begin{tabular}{|c|c|c|} \hline Date & Account Titles and Explanation \\ Dec. 31,2018 \\ Dec. 31,2019 \\ Dec. 31,2021 \end{tabular} (To record interest revenue.) (To record adjustment.) (To record interest revenue.) (To record adjustment.)

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