Debt Investment Transactions, Avallable-for-Sale Valuation Year 1 Apr. 1 Purchased $90,000 of Smoke Bay 6%,10-year bonds at their face amount plus accrued interest of $900. The bonds pay interest semlannually on February 1 and August 1. May 16 Purchased $42,000 of Geotherma Co. 4%,12-year bonds at their face amount plus accrued interest of $70. The bonds pay interest semiannually on May 1 and November 1 . Aug. 1 Recelved semlannual interest on the Smoke Bay bonds. Sept. 1 Sold $12,000 of Smoke Bay bonds at 101 plus accrued interest of $60. Nov. 1 Recelved semlannual Interest on the Geotherma Co. bonds. Accrued \$1,950 interest on the Smoke Bay bonds. Dec. 31 Accrued $280 interest on the Geotherma Co. bonds. Year 2 Feb. 1 Recelved semlannual interest on the Smoke Bay bonds. May 1 Recelved semlannual interest on the Geotherma Co. bonds. Required: 1. Journalize the entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. 2. If the bond portfolio is classifled as avallable for sale, what impact would this have on financlal statement disclosure? If the bonds are classiffed as avallable-for-sale securitles, then the portfollo of bonds would need to be adjusted to - This would be accomplished by using a valuation allowance account and account