Octavio Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits. These debits are described as follows.

Instructions
(Round all computations to the nearest dollar.)
(a) Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale.
(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2008, using the straight-line method.
(c) The fair values of the securities on December 31, 2008, were:
Chiang Kai-shek Company common stock ..$ 33,800
U.S. government bonds ............124,700
Claude Monet Company bonds ........58,600
What entry or entries, if any, would you recommend be made?
(d) The U.S. government bonds were sold on July 1, 2009, for $119,200 plus accrued interest. Give the properentry.

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Feb. 1, 2008 April 1 Chiang Kai-shek Company common stock, $100 par, 200 shares U.S. government bonds, 11%, due April 1, 2018, interest payable April 1 and October 1, 100 bonds of $1,000 par each Claude Monet Company 12% bonds, par $50,000, dated March 1, 2008 purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2028 $37,400 100,000 July 1 54,000