Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.
| Feb. 1, 2012 | Sharapova Company common stock, $106 par, 212 shares | $41,100 | ||
| April 1 | U.S. government bonds, 12%, due April 1, 2022, interest payable April 1 and October 1, 111 bonds of $1,000 par each | 111,000 | ||
| July 1 | McGrath Company 12% bonds, par $53,000, dated March 1, 2012, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2032 | 57,240 |
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, 2012, using the straight line method
c)The fair values of the investments on December 31, 2012, were:
d) The U.S. government bonds were sold on July 1, 2013, for $119,920 plus accrued interest. Give the proper entry