If DebtInvestmentTransactions, Available-for-Sale Valuation

Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31:

Year 1Apr. 1.Purchased $66,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $770. The bonds pay interest semiannually on February 1 and August 1.May 16.Purchased $134,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $335. The bonds pay interest semiannually on May 1 and November 1.Aug. 1.Received semiannual interest on the Smoke Bay bonds.Sept. 1.Sold $26,400 of Smoke Bay bonds at 104 plus accrued interest of $154.Nov. 1.Received semiannual interest on the Geotherma Co. bonds.Dec. 31Accrued $924 interest on Smoke Bay bonds.Dec. 31Accrued $670 interest on Geotherma Co. bonds.Year 2Feb. 1.Received semiannual interest on the Smoke Bay bonds.May 1.Received semiannual 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.