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 Marti Inc., which has a fiscal year ending on December 31:1 2015 Apr. 1. May 16. Purchased $48,000 of Smoke Bay 4%, 10-year bonds at their face amount plus accrued interest of $320. The bonds pay interest semiannually on February 1 and August 1. Purchased $96,000 of Geotherma Co. 6%, 12-year bonds at their face amount phus accrued interest of $240. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. Sold $19,200 of Simoke Bay bonds at 104 plus accrued interest of $64. Nov. 1. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued interest on the Smoke Bay bonds. Dec 31 Accrued interest on the Geotherma Co. bonds. 2016 Feb. 1. May 1. Required Received semiannual interest on the Smoke Bay bonds. Received semiannual interest on the Geotherma Co, bonds. 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 Apr. 1. May 16: Purchased $48,000 of Smoke Bay 4%, 10-year bonds at their face amount plus accrued interest of $320. The bonds pay interest semiannually on February 1 and August 1. Purchased $96,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $240. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. < Nov, 1. Sold $19,200 of Smoke Bay bonds at 104 plus accrued interest of $64. Received semiannual interest on the Geotherma Co. bonds. Dec. 31 Accrued interest on the Smoke Bay bonds. Dec. 31 Accrued interest on the Geotherma Co. bonds. 2016 Feb. 1. Received semiannual interest on the Smoke Bay bonds. May 1 Required: Received semiannual interest on the Geotherma Co, bonds. 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 20Y5 Apr. 1. Investments-Smoke Bay Bonds Interest Receivable Cash May 16. Investments-Geotherma Co. Bonds Interest Receivable Cash Aug. 1. Sept. 1. Interest Receivable X Cash X Interest Receivable 48,320 X 100 000 000 Nov. 1. Dec. 31 Smoke Bay Dec. 31 Geotherma Co. 20Y6 Feb. 1. May 1. Check My Work 000 eBook Show Me How May 1. BB 2. If the bond portfolio is classified as available for sale, what impact would this have on financial statement dis If the bonds are classified as available-for-sale securities, then the portfolio of bonds would need to be adjusted valuation allowance account and an unrealized gain (loss) account. Feedback Check My Work 1. P Apr. 1 and May 16, 20Y5: Record the investment at face value. Interest that is receivable on the date of Aug. 1 and Nov. 1, 2015: Record the interest revenue as earned. Bond principal x interest rate x time Te Sept. 1, 2015: Calculate the proceeds: First compute the % x face amount of bonds sold. Next, adjust the determine any gain or loss on the transaction. Dec. 31, 20Y5: Remember to accrue the interest only on the remaining Smoke Bay bonds after the sale. Us the appropriate time period. Feb. 1, 20Y6: Calculate remaining bond principal after Sept. 1 sale. Remember to remove any accrued inter May 1906 Flee the came formula to commute the interest adjusted for the annranriate time narind Dame Check My Work