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.

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

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.

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Carying Amount of Bonds S108,660 107,093 105,447 103,719 101,905 100,000 Bond Premium Amortization Cash Interest Revenue Date 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 Received $1,567 1,646 1,728 1,814 1,905 $7,000 $5,433 5,354 7,000 5,272 5,186 5,095 7,000 7,000