Presented below is an amortization schedule related to Shamrock Company’s 5-year, $150,000 bond with a 8% interest rate and a 5% yield, purchased on December 31, 2018, for $169,484.Date CashReceived InterestRevenue Bond PremiumAmortization Carrying Amountof Bonds12/31/18 $169,48412/31/19 $12,000 $8,474 $3,526 165,95812/31/20 12,000 8,298 3,702 162,25612/31/21 12,000 8,113 3,887 158,36912/31/22 12,000 7,918 4,082 154,28712/31/23 12,000 7,713 4,287 150,000The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23Amortized cost $165,958 $162,256 $158,369 $154,287 $150,000Fair value $165,400 $164,500 $160,200 $155,500 $150,000 (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 manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)No.DateAccount Titles and ExplanationDebitCredit(a)choose a transaction date enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount(b)choose a transaction date enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount(c)choose a transaction date enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount(d)choose a transaction date enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount(e)choose a transaction date enter an account title to record interest revenueenter a debit amountenter a credit amount enter an account title to record interest revenueenter a debit amountenter a credit amount enter an account title to record interest revenueenter a debit amountenter a credit amount (To record interest revenue.) enter an account title to record adjustmententer a debit amountenter a credit amount enter an account title to record adjustmententer a debit amountenter a credit amount (To record adjustment.) (f)choose a transaction date enter an account title to record interest revenueenter a debit amountenter a credit amount enter an account title to record interest revenueenter a debit amountenter a credit amount enter an account title to record interest revenueenter a debit amountenter a credit amount (To record interest revenue.) enter an account title to record adjustmententer a debit amountenter a credit amount enter an account title to record adjustmententer a debit amountenter a credit amount (To record adjustment.)

The question is based on the concept of Financial Accounting. As per the bartleby guidelines we are allowed to answer only the first three sub-parts in case of multiple sub-parts.Requirement Date Account titles Debit Credit (a) Dec. 31, 2018 Held-to-maturity securities 169,484 Cash 169,484 (b) Dec. 31, 2019 Cash 12,000 Held-to-maturity securities 3,526 Interest Revenue 8,474 (c) Dec. 31, 2021 Cash 12,000 Held-to-maturity securities 3,887 Interest Revenue 8,113

Answered: Presented below is an amortization…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Presented below is an amortization schedule related to Shamrock Company’s 5-year, $150,000 bond with a 8% interest rate and a 5% yield, purchased on December 31, 2018, for $169,484.

Date	Cash Received	Interest Revenue	Bond Premium Amortization	Carrying Amount of Bonds
12/31/18				$169,484
12/31/19	$12,000	$8,474	$3,526	165,958
12/31/20	12,000	8,298	3,702	162,256
12/31/21	12,000	8,113	3,887	158,369
12/31/22	12,000	7,918	4,082	154,287
12/31/23	12,000	7,713	4,287	150,000

The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end.

	12/31/19	12/31/20	12/31/21	12/31/22	12/31/23
Amortized cost	$165,958	$162,256	$158,369	$154,287	$150,000
Fair value	$165,400	$164,500	$160,200	$155,500	$150,000

(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 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
(a)	choose a transaction date	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(b)	choose a transaction date	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(c)	choose a transaction date	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(d)	choose a transaction date	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(e)	choose a transaction date	enter an account title to record interest revenue	enter a debit amount	enter a credit amount
		enter an account title to record interest revenue	enter a debit amount	enter a credit amount
		enter an account title to record interest revenue	enter a debit amount	enter a credit amount
		(To record interest revenue.)
		enter an account title to record adjustment	enter a debit amount	enter a credit amount
		enter an account title to record adjustment	enter a debit amount	enter a credit amount
		(To record adjustment.)
(f)	choose a transaction date	enter an account title to record interest revenue	enter a debit amount	enter a credit amount
		enter an account title to record interest revenue	enter a debit amount	enter a credit amount
		enter an account title to record interest revenue	enter a debit amount	enter a credit amount
		(To record interest revenue.)
		enter an account title to record adjustment	enter a debit amount	enter a credit amount
		enter an account title to record adjustment	enter a debit amount	enter a credit amount
		(To record adjustment.)

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