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 Aug. 1. Sept. 1. Purchased $48,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $560. The bonds pay interest semiannually on February 1 and August 1. Purchased $100,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $250. The bonds pay interest semiannually on May 1 and November 1 Received semiannual interest on the Smoke Bay bonds. Sold $19,200 of Smoke Bay bonds at 103 plus accrued interest of $112. Received semiannual interest on the Geotherma Co, bonds. Accrued interest on the Smoke Bay bonds Accrued interest on the Geotherma Co, bonds. Nov. 1 Dec. 31 Dec. 31 2016 Feb. 1 Received semiannual interest on the Smoke Bay bonds. Received semiannual interest on the Geotherma Co, bonds. May 1 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 2015 Apr, 1 May 16 III III III III III III IIII Aug 1 Sept. 1 Nov. 1. Dec. 31 Smoke Bay II II III II II II III Dec. 31 Geotherma Co. 2016 Feb. 1. ES May 1 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