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Transactions for Bond (Held-to-Maturity) Investments Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, 2015. The following are bond

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Transactions for Bond (Held-to-Maturity) Investments Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, 2015. The following are bond (held-to-maturity) transactions by Rekya Mart Inc, which has a fiscal year ending on December 31: 2015 Purchased $42,000 of Smoke Bay 5%, 10-year bonds at their face amount plus accrued interest of $350. The bonds pay interest semiannually on February 1 and August 1. >> Purchased $122,000 of Geotherma Co. 6%, 12-year bonds at their face amount plu accrued interest of $305. The bonds pay interest semiannually on May 1 and November 1. Received semiannual interest on the Smoke Bay bonds. Sold $16,800 of Smoke Bay bonds at 104 plus accrued interest of $70. Received semiannual interest on the Geotherma Co. bonds. Accrued interest on the Smoke Bay bonds. Accrued interest on the Geotherma Co. bonds. Aug 1 Sept 1 Nov. 1 Dec 31 Dec. 31 2015 b. 1 May 1 Received semiannual interest on the Smoke Bay bonds. Received semiannual interest on the Geotherma Co. bonds. Required: 1. Journalize the entries to record these transactions. If an amount box does not require an entry, leave it blank. Do not round your intermediate calculations and round final answers to the nearest dollar. Use the nearest whole month for the interest period. Description Date De Credo 2015 Apie Tartus 2.000 C- May 16 122.000 Treatment them to terest Cath- 132.10 Aus! Cash- Interesach Triton St1 Interest - Game of Iwwe perou. Date Description Debit Orae 2015 Ar 42.000 Simokety Bond. Bachat 350 cam- 2.50 May 16 122.000 Investments thermae Bones Interest Recent 305 A 1 Interact Interest Sept. 1 C- Beve Gone of Inne trements okey Bonde III III Nov. 1 Cash- reste- rever Dec 31 Smoke Bay Tere Rec- teret even Dec 31 Geothermal test Interest == 2015 Feb 1 Cash- I Bachable wart Have May 1 Cah Interested Interesave 2. If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure? If the bonds are classified as available-for-sale securities, then the portfolio of bonds would need to be adjusted to - This would be recorded by using a valuation allowance account and account

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