Instructions Soto Industries Inc. is an athletic footware company that began operations on January 1, 20Y3. The following are bond (held-to-maturity) transactions by Soto Industries Inc, which has a fiscal year ending on December 31: Record these transactions on page 10 2013 Apr 1 June 1 Sept. 1 Purchased $100,000 of Welch Co. 6%, 15-year bonds at their face amount plus accrued interest of $500. The bonds pay interest semiannually on March 1 and September 1. Purchased $210,000 of Balay %, 10-year bonde at their face amount plus aotred interest of 8700, The bonds pay interest semiannually on May 1 and November 1. Received semiannual interest on the Wolch Co. bonds Sold $40.000 of Welch Co. bonds at 97 plus accrued interest of $200 Received semiannual interest on the Bailey bonds Accrued interest on the Welch Co. bondi. Accrued interest on the Bailey bonds 30 Nov 1 Dec 31 31 Record these transactions on page 11 2014 Mw 1 Received semiarvual interest on the Woich Co. Donds Received somiaruni interest on the Bailey bonds May Instructions June 1 Sept. 1 $500. The bonds pay interest semiannually on March 1 and September 1, Purchased $210,000 of Barley 4%, 10-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on May 1 and November 1, Received semiannual interest on the Welsh Co. bonds Sold $40.000 of Welch Co. bonds at 97 plus accrued interest of $200. Received semiannual interest on the Bailey bonds Accrued interest on the Weich Co bonds Accrued Interest on me Bailey bonds. 30 Nov 1 Dec 31 31 Record these transactions on page 11 2014 Mar 1 Received semiannual interest on the Welch Co bonds. Received semiannual interest on the Baley bondo May 1 Required: 1. Journakre the entries to record these transactions. Refer to the chart of accounts for the exact wording or be account the CNOW Journal de not Useines for ournal explanations. Every fine on a journal page is used for det or credit entries, CNOW jouw will automatically indenta credit entry when a credit amount is entered Assume 30 days a yew. Do not round your intermediate calculations and round final answers to the nearest dollar 2. bond portfolio le classified as an avalabile for sale investment, how would in te kuported on who wanaw statements? Chart of Accounts CHART OF ACCOUNTS Soto Industries Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 611 Interest Revenue 612 Dividend Revenue 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments-Welch Co. Bonds 162 Investments-Bailey Bonds 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available-for-Sale Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 535 Rent Expense Journal Shaded cells have feedback 14. Journalize the entries to record 2073 transactions. Refer to the chart of accounts for the exact wording of the account ones CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a crede amount is entered Assume 360 days a year. Do not round your intermediate calculations and round final answers to the nearest dollar. Question not attempted MGE 10 JOURNAL Score: 0/248 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DET CREDIT ASSETS LIABUTI QUITY 1 2 1 5 . 7 . 18 11 Shaded cells have feedback 2 10 13 14 15 16 Adjusting Entries 11 N 11 15. Journalize the entries to record 2074 transactions. Refer to the chart of accounts for the exact wording of the account tiles. CNOW journais do not use lines for journal explanations. Every Nne on a journal page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is enteved. Assume 360 days a year. Do not round your intermediate calculations and round final answers to the nearest dollar. Question not attempted. PAGE 11 JOURNAL Score: 0/75 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 5 Points: 0/14 Required: 1. Journalize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume 360 days a year. Do not round your intermediate calculations and round final answers to the nearest dollar. 2. If the bond portfolio is classified as an available for sale investment, how would it be reported on the financial statements
