Transactions for Bond (Held-to-Maturity) Investments Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, 20Y5. The following are bond (held-to-maturity) transactions by Rekya Mart Inc., which has a fiscal year ending on December 31: 2015 Apr. 1 Purchased $90,000 of Smoke Bay 6%, 10-year bonds at their face amount plus accrued interest of $900. The bonds pay interest semiannually on February 1 and August 1. May 16 Purchased $42,000 of Geotherma Co. 4%, 12-year bonds at their face amount plus accrued interest of $70. The bonds pay interest semiannually on May 1 and November 1. Aug. 1 Received semiannual interest on the Smoke Bay bonds. Sept. 1 Sold $12,000 of Smoke Bay bonds at 101 plus accrued interest of $60. Nov. 1 Received semiannual interest on the Geotherma Co. bonds. Dec. Accrued interest on the Smoke Bay bonds. 31 Dec. 31 2016 Accrued interest on the Geotherma Co. bonds. Feb. 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. 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. Date 20Y5 Apr. 1 May 16 Description Debit Credit L Aug. 1 Sept. 1 Nov. 1 Dec. 31-Smoke Bay Dec. 31-Geotherma Co. 2016 Feb. 11 May 1 111 1111 111 111 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.