15. On January 1, 2018, the Gourmet's Restaurant decides to invest in Lake Redburgh bonds. The bonds mature on December 31, Requirements 2024, and pay interest on June 30 and December 31 at 6% annually. The market rate of interest was 6% on January 1, 2018, 1. Journalize the transactions related to Gourmet's investment in Lake Redburgh bonds during 2018. so the $160,000 maturity value bonds sold for face value. Gourmet's intends to hold the bonds until December 31, 2024. 2. In what category would Gourmet's report the investment on the December 31, 2018, balance sheet? Requirement 1. Journalize the transactions related to Gourmet's investment in Lake Redburgh bonds during 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Gourmet's investment in Lake Redburgh bonds on January 1, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 1 (1) (2) (3) (4) (5) Next, journalize Gourmet's receipt of interest on June 30, 2018. Date Accounts and Explanation Debit Credit 2018 Jun. 30 (6) (7) (8) (9) (10) Now journalize Gourmet's receipt of interest on December 31, 2018 Date Accounts and Explanation Debit Credit 2018 Dec. 31 (11) (12) (13) (14) (15) Requirement 2. In what category would Gourmet's report the investment on the December 31, 2018, balance sheet? Gourmet's would report the investment as a(n) (16) debt investment classified as a (17) asset on the December 31, 2018, balance sheet. (1) O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Fair Value Adjustment-Available-for-Sale Trading Debt Investments O Fair Value AdjustmentHeld-to-Maturity Unrealized Holding GainAvailable-for-Sale O Held-to-Maturity Debt Investments O Unrealized Holding Loss-Held-to-Maturity O Interest Revenue (2) O Available-for-Sale Debt Investments O Cash O Dividend Revenue Fair Value Adjustment-Available-for-Sale Trading Debt Investments O Fair Value AdjustmentHeld-to-Maturity Unrealized Holding GainAvailable-for-Sale O Held-to-Maturity Debt Investments O Unrealized Holding Loss-Held-to-Maturity Interest Revenue (3) O O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Fair Value Adjustment-Available-for-Sale Trading Debt Investments O Fair Value AdjustmentHeld-to-Maturity O Unrealized Holding GainAvailable-for-Sale O Held-to-Maturity Debt Investments O Unrealized Holding LossHeld-to-Maturity Interest Revenue (5) (4) O Available-for-Sale Debt Investments O Cash Dividend Revenue O Fair Value Adjustment-Available-for-Sale Trading Debt Investments O Fair Value AdjustmentHeld-to-Maturity Unrealized Holding GainAvailable-for-Sale O Held-to-Maturity Debt Investments O Unrealized Holding LossHeld-to-Maturity O Interest Revenue O Disposed of bond at maturity. O Purchased investment in bonds. O Received cash interest. (6) Available-for-Sale Debt Investments O Cash O Dividend Revenue O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Held-to-Maturity Debt Investments O Interest Revenue O Trading Debt Investments Unrealized Holding Gain-Available-for-Sale O Unrealized Holding Loss-Held-to-Maturity (7) O O Available-for-Sale Debt Investments O Cash Dividend Revenue O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Held-to-Maturity Debt Investments O Interest Revenue O Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding LossHeld-to-Maturity (8) O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Fair Value AdjustmentAvailable-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Held-to-Maturity Debt Investments O Interest Revenue O Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding Loss-Held-to-Maturity (9 Available-for-Sale Debt Investments O Cash O Dividend Revenue O Fair Value AdjustmentAvailable-for-Sale Trading Debt Investments O Fair Value AdjustmentHeld-to-Maturity Unrealized Holding GainAvailable-for-Sale Held-to-Maturity Debt Investments Unrealized Holding Loss-Held-to-Maturity Interest Revenue (10) O Disposed of bond at maturity. O Purchased investment in bonds. O Received cash interest. (11) O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Held-to-Maturity Debt Investments O Interest Revenue O Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding Loss-Held-to-Maturity (12) O Available-for-Sale Debt Investments O Cash O Dividend Revenue Fair Value Adjustment-Available-for-Sale Trading Debt Investments O Fair Value AdjustmentHeld-to-Maturity O Unrealized Holding Gain-Available-for-Sale Held-to-Maturity Debt Investments Unrealized Holding Loss-Held-to-Maturity Interest Revenue (13) Available-for-Sale Debt Investments O Cash O Dividend Revenue O Fair Value AdjustmentAvailable-for-Sale O Trading Debt Investments Fair Value Adjustment-Held-to-Maturity Unrealized Holding GainAvailable-for-Sale Held-to-Maturity Debt Investments O Unrealized Holding LossHeld-to-Maturity Interest Revenue (14) O Available-for-Sale Debt Investments Cash O Dividend Revenue O Fair Value Adjustment-Available-for-Sale Trading Debt Investments O Fair Value AdjustmentHeld-to-Maturity O Unrealized Holding GainAvailable-for-Sale Held-to-Maturity Debt Investments O Unrealized Holding LossHeld-to-Maturity Interest Revenue (15) O Disposed of bond at maturity. O Purchased investment in bonds. Received cash interest. (16) O available-for-sale held-to-maturity trading OOO (17) O current O long-term
