Shyloft Corporation purchased $$100,000,7\%$ bonds of Coyyle Ltd$.$ on $2$ July $20$X$3.$ Interest is paid $1$ July and $1$ January. The bonds expire on $30$ June $20$X$13.$ The market interest rate at the time of purchase was $6\mathrm{.}5\%.$ The fair value of the bond is as follows:

$31$ December $20$X$3$: $$101,905$

$31$ December $20$X$4$: $$103,320$

Scenario A Assume that Shyloft has purchased the bond with the intention to hold it until maturity, but that, if the fair value of the bond increases, Shyloft would consider selling it$.$

Scenario B Assume that Shyloft has purchased the bond with the intention to hold the bond until the fair value improves and then sell it$.$

Scenario C Assume the Shyloft has purchased the bond with the intention to hold it until maturity.

Required:

Prepare the journal entries for $20$X$3$ and $20$X$4$ for each scenario. Shyloft has a $31$ December year$-$end. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$Shyloft Corporation purchased $$100,000,7\%$ bonds of Coyyle Ltd$.$ on $2$ July $20$X$3.$ Interest is paid $1$ July and $1$ January. The bonds expire on $30$ June $20$X$13.$ The market interest rate at the time of purchase was $6\mathrm{.}5\%.$ The fair value of the bond is as follows:

$31$ December $20$X$3$: $$101,905$

$31$ December $20$X$4$: $$103,320$

Scenario A Assume that Shyloft has purchased the bond with the intention to hold it until maturity, but that, if the fair value of the bond increases, Shyloft would consider selling it$.$

Scenario B Assume that Shyloft has purchased the bond with the intention to hold the bond until the fair value improves and then sell it$.$

Scenario C Assume the Shyloft has purchased the bond with the intention to hold it until maturity.

Required:

Prepare the journal entries for $20$X$3$ and $20$X$4$ for each scenario. Shyloft has a $31$ December year$-$end. $($If no entry is required for a tra nsaction$/$event$,$ select $"$No journal entry required" in the first account field.$)1.$Record the purchase of $$100,000,7\%$ bonds of Coyyle Ltd$.$ on $1$ July $20$X$3$ with the intention to hold it until maturity, but that, if the fair value of the bond increases, Shyloft would consider selling it$.2.$Record the interest receivable on the bonds for $20$X$3.3.$ Record the gain or loss on the investment at the end of $20$X$3.4.$ Record the interest on bonds received in cash on $1$ January $20$X$4.5.$ Record the interest on bonds received in cash on $1$ July $20$X$4.6.$ Record the interest receivable on the bonds for $20$X$4.7.$ Record the gain or loss on the investment at the end of $20$X$4.8.$ Record the purchase of $$85,000,7\%$ bonds of Coyyle Ltd$.$ on $2$ July $20$X$3$ with the intention to hold the bond until the fair value improves and then sell it$.9.$ Record the interest receivable on the bonds for $20$X$3.10.$Record the gain or loss on the investment at the end of $20$X$3.$