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

Record these transactions on page 10

Year 1
Apr.	1.	Purchased $81,600 of Welch Co. 4%, 15-year bonds at their face amount plus accrued interest of $544. The bonds pay interest semiannually on March 1 and September 1.
June	1.	Purchased $60,000 of Bailey 8%, 10-year bonds at their face amount plus accrued interest of $200. The bonds pay interest semiannually on May 1 and November 1.
Sept.	1	Received semiannual interest on the Welch Co. bonds.
	30	Sold $25,200 of Welch Co. bonds at 96 plus accrued interest of $84.
Nov.	1	Received semiannual interest on the Bailey bonds.
Dec.	31	Accrued $752 interest on the Welch Co. bonds.
	31	Accrued $800 interest on the Bailey bonds.

Record these transactions on page 11

Year 2
Mar.	1	Received semiannual interest on the Welch Co. bonds.
May	1	Received semiannual interest on the Bailey bonds.

Required:

1a. Journalize the entries to record Year 1 transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.

1b. Journalize the entries to record Year 2 transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.