Business, 19.09.2021 01:40 tsmoothb15851

Soto Industries Inc. is an athletic footware company that began operations on January 1, 20Y3. The following are bond (held-to-maturity) transactions by Soto Industries Inc., which has a fiscal year ending on December 31: Year 1
Apr. 1 Purchased $86,400 of Welch Co. 5%, 15-year bonds at their face amount plus accrued interest of $720. The bonds pay interest semiannually on March 1 and September 1.
June 1 Purchased $64,800 of Bailey 5%, 10-year bonds at their face amount plus accrued interest of $135. The bonds pay interest semiannually on May 1 and November 1.
Sept. 1 Received semiannual interest on the Welch Co. bonds. 30 Sold $36,000 of Welch Co. bonds at 97 plus accrued interest of $150.
Nov. 1 Received semiannual interest on the Bailey bonds.
Dec. 31 Accrued interest on the Welch Co. bonds.
31 Accrued interest on the Bailey bonds.

Year 2:
Mar. 1 Received semiannual interest on the Welch Co. bonds.
May 1 Received semiannual interest on the Bailey bonds.

Required:
a. Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
b. If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?

Answers: 3

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Soto Industries Inc. is an athletic footware company that began operations on January 1, 20Y3. The f...

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