Debt investment transactions, available-for-sale valuation Soto Industries Inc. in an athletic foot ware company that began operations on January 1, Year 1. The following transactions relate to debt...

Debt investment transactions, available-for-sale valuation
Soto Industries Inc. in an athletic foot ware company that began
operations on January 1, Year 1. The following transactions relate to debt
investments acquired by Solo Industries Inc., which has a fiscal year
ending on December 31:

Instructions
1. Journalize the entries to record these transactions.
2. If the bond portfolio is classified as available for sale, what impact
would this have on financial statement disclosure?

Extracted text: Year 1 Purchased $100,000 of Welch Co. 6%, 15-year bonds at their Apr. face amount plus accrued interest of $500. The bonds pay 1. interest semiannually on March 1 and September 1. Purchased $210,000 of Bailey 49%, 10-year bonds at their face June amount plus accrued interest of $700. The bonds pay interest 1. semiannually on May 1 and November 1. Sept. Received semiannual interest on the Welch Co. bonds. 1. Sold $10,000 of Welch Co. bonds at 97 plus accrued interest of 30. $200. Nov. Received semiannual interest on the Bailey bonds. 1. Dec. Accrued $1,200 interest on the Welch Co. bonds. 31. Accrued $1,400 interest on the Hailey bonds. 31. Year 2 Mar. Received semiannual interest on the Welch Co. bonds. 1. May Received semiannual interest on the Bailey bonds. 1.