Write a 350- to 700-word paper in which you respond to the following Discussion Question from the text: • Ch. 17 Problems: P17-7 P17-7 (Available-for-Sale and Held-to-Maturity Debt Securities Entries) The following information relates to the debt securiti

Write a 350- to 700-word paper in which you respond to the following Discussion Question from the text:

• Ch. 17 Problems: P17-7

P17-7 (Available-for-Sale and Held-to-Maturity Debt Securities Entries) The following information relates to the debt securities investments of Wildcat Company.

·         1.On February 1, the company purchased 10% bonds of Gibbons Co. having a par value of $300,000 at 100 plus accrued interest. Interest is 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 1 and December 1.

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

·         5.On October 1, semiannual interest is received.

·         6.On December 1, semiannual interest is received.

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

Instructions

·         (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 investments, explain how the journal entries would differ from those in part (a).

Write a 350- to 700-word paper in which you respond to the following Discussion Question from the text:

• Ch. 20 Problems: P20-1

P20-1 (2-Year Worksheet) On January 1, 2014, Harrington Company has the following defined benefit pension plan balances.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2015, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows.

Instructions

·         (a)Prepare a pension worksheet for the pension plan for 2014 and 2015.

·         (b)For 2015, prepare the journal entry to record pension-related amounts.