The Following information relates to the debt securities investments of Wildcat Company.

1- On 2/1, the company purchased 10% bonds of Gibbons Co. having a par value of $300,000 at 100 plus accrued interest. Interest in payable April 1 and October 1.

2-On April 1, semiannual interest is received.

3-On July 1, 9% bonds of Sampson Inc, were purchased. These bonds with a par value of $200,000 were purchased at 100 plus accrued interest. Interest dates are June and December 1.

4-On September 1, bonds with a par value of $60,000, purchased on Feb 1, are sold at 99 plus accrued interest.

5-On October 1, semiannual is received.

6-On December 1, semiannual is received.

7-On December 31, the fair value of bonds purchased Feb 1 and July 1 are 95 and 93, respectively.

Questions:

a-Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.

b-If Wildcat classified these as held-to-maturity securities, explain how the journal entries would differ from those in part (a).