Presented below is an amortization schedule related to Kathy Baker Company's 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2008, 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, 2008, assuming the bonds are classified as held-to-maturity securities.
(b) Prepare the journal entry (ies) related to the held-to-maturity bonds for 2009.
(c) Prepare the journal entry (ies) related to the held-to-maturity bonds for 2011.
(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 2009.
(f) Prepare the journal entry (ies) related to the available-for-sale bonds for2011.

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Cash Received Interest Bond Premium Carrying Amount Date Revenue Amortization of Bonds 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 $7,000 7,000 7,000 7,000 7,000 $5,433 5,354 5,272 5,186 5,095 $1,567 1,646 1,728 1,814 1,905 $108,660 107,093 105,447 103,719 101,905 100,000 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 $100,000 $103,719 $106,500 $107,500 $105,650 $103,000 $100,000 $101,905 Amortized cost Fair value $107,093 $105,447