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: 20Y5 Apr. 1. Purchased $54,000 of Smoke Bay 5%, 10-year bonds at their face amount plus accrued interest of $450. The bonds pay interest semiannually on February 1 and August 1. May 16. Purchased $122,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $305. The bonds pay interest semiannually on May 1 and November 1. Aug. 1. Received semiannual interest on the Smoke Bay bonds. Sept. 1. Sold $21,600 of Smoke Bay bonds at 103 plus accrued interest of $90. 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. 20Y6 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. Use the nearest whole month for the interest period. Date Description Debit Credit 20Y5 Apr. 1. Investments-Smoke Bay Bonds fill in the blank 2 54,000 fill in the blank 3 Interest Receivable fill in the blank 5 450 fill in the blank 6 Cash fill in the blank 8 fill in the blank 9 54,450 May 16. Investments-Geotherma Co. Bonds fill in the blank 11 122,000 fill in the blank 12 Interest Receivable fill in the blank 14 305 fill in the blank 15 Cash fill in the blank 17 fill in the blank 18 122,305 Aug. 1. Cash fill in the blank 20 1,350 fill in the blank 21 Interest Receivable fill in the blank 23 fill in the blank 24 450 Interest Revenue fill in the blank 26 fill in the blank 27 900 Sept. 1. Cash fill in the blank 29 fill in the blank 30 Interest Revenue fill in the blank 32 fill in the blank 33 Gain on Sale of Investment fill in the blank 35 fill in the blank 36 Investments-Smoke Bay Bonds fill in the blank 38 fill in the blank 39 21,600 Nov. 1. Cash fill in the blank 41 3,660 fill in the blank 42 Interest Receivable fill in the blank 44 fill in the blank 45 305 Interest Revenue fill in the blank 47 fill in the blank 48 3,355 Dec. 31 Smoke Bay Interest Receivable fill in the blank 50 fill in the blank 51 Interest Revenue fill in the blank 53 fill in the blank 54 Dec. 31 Geotherma Co. Interest Receivable fill in the blank 56 fill in the blank 57 Interest Revenue fill in the blank 59 fill in the blank 60 20Y6 Feb. 1. Cash fill in the blank 62 810 fill in the blank 63 Interest Receivable fill in the blank 65 fill in the blank 66 Interest Revenue fill in the blank 68 fill in the blank 69 May 1. Cash fill in the blank 71 3,660 fill in the blank 72 Interest Receivable fill in the blank 74 fill in the blank 75 Interest Revenue fill in the blank 77 fill in the blank 78 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 fair value . This would be recorded by using a valuation allowance account and an unrealized gain (loss) account.