Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31:
Year 1  
Apr. 1.  Purchased $78,000 of Smoke Bay 7%, 10year bonds at their face amount plus accrued interest of $910. The bonds pay interest semiannually on February 1 and August 1. 
May 16.  Purchased $120,000 of Geotherma Co. 6%, 12year bonds at their face amount plus accrued interest of $300. The bonds pay interest semiannually on May 1 and November 1. 
Aug. 1.  Received semiannual interest on the Smoke Bay bonds. 
Sept. 1.  Sold $31,200 of Smoke Bay bonds at 103 plus accrued interest of $182. 
Nov. 1.  Received semiannual interest on the Geotherma Co. bonds. 
Dec. 31  Accrued $1,092 interest on Smoke Bay bonds. 
Dec. 31  Accrued $600 interest on Geotherma Co. bonds. 
Year 2  
Feb. 1.  Received semiannual interest on the Smoke Bay bonds. 
May 1.  Received semiannual interest on the Geotherma Co. bonds. 
Required:
1. Journalize the entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
1. Journalize the entries to record these transactions?
Answer:
S.No 
Particulars 
Debit ($) 
Credit ($) 
14 
7% Smoke Bay 10 Year Bonds a/c 
78,000 

Interest Accrued a/c 
910 

Bank a/c 
78,910 

165 
6% Geotherma 12 Tear Bonds a/c 
120,000 

Interest Accrued a/c 
300 

Bank a/c 
120,300 

18 
Bank a/c 
2,730 

Interest Accrued a/c 
910 

Interest a/c 
1,820 

19 
Bank a/c 
32,318 

7% Smoke Bay 10 Year Bonds a/c 
31,200 

Interest a/c 
182 

Capital Profit a/c 
936 

111 
Bank a/c 
3,600 

Interest Accrued a/c 
300 

Interest a/c 
3,300 

3112 
Interest Accrued a/c 
1,692 

Interest a/c 
1,692 

Year2 

12 
Bank a/c 
1,638 

Interest Accrued a/c 
1,092 

Interest a/c 
546 

15 
Bank a/c 
3,600 

Interest Accrued a/c 
600 

Interest a/c 
3,000 
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