Gaelic Industries Inc. is an athletic footware company that began operations on January 1, 2016. The following transactions relate to debt investments acquired by Gaelic Industries Inc., which has a fiscal year ending on December 31:

Record these transactions on page 10

2016
May	1	Purchased $75,000 of Avery Co. 7%, 15-year bonds at their face amount plus accrued interest of $875. The bonds pay interest semiannually on March 1 and September 1.
	16	Purchased $60,000 of Clawhammer 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1.
Sept.	1	Received semiannual interest on the Avery Co. bonds.
	30	Sold $30,000 of Avery Co. bonds at 98 plus accrued interest of $175.
Nov.	1	Received semiannual interest on the Clawhammer bonds.
Dec.	31	Accrued $1,050 interest on the Avery Co. bonds.
	31	Accrued $600 interest on the Clawhammer bonds.

Record these transactions on page 11

2017
Mar.	1	Received semiannual interest on the Avery Co. bonds.
May	1	Received semiannual interest on the Clawhammer bonds.

Required:

1.

Journalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. In your computations, round per share amounts to two decimal places.

2.

If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?

1. Journalize the entries to record the transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. In your computations, round per share amounts to two decimal places.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

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JOURNAL

Score: 10/331

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