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Gaelic Industries Inc. is an athletic footwear company that began operations on January 1, 2016. The following transactions relate to debt investments acquired by Gaelic Industries Inc., which has a fiscal year ending on December 31 2016 May 1 16 Purchased $75,000 of Avery Co. 7%, 15-year bonds at their face amount plus accrued interest of $875. The bonds pay interest semiannually on May 1 and November 1. Purchased $60,000 of Clawhammer 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1. Sept. 1 Received semiannual interest on the Avery Co. bonds. 30 Sold $30,000 of Avery Co. bonds at 98 plus accrued interest of $175 Nov. 1 Received semiannual interest on the Clawhammer bonds. Dec. 31 Accrued $1,050 interest on the Avery Co. bonds. 2017 31 Accrued $600 interest on the Clawhammer bonds. May 1 Received semiannual interest on the Avery Co. bonds May 1 Received semiannual interest on the Clawhammer bonds. 1. Joumalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. 2.If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?

Gaelic Industries Inc. is an athletic footwear company that began operations on January 1, 2016. The following transactions relate to debt investments acquired by Gaelic Industries Inc., which has a fiscal year ending on December 31 2016 May 1 16 Purchased $75,000 of Avery Co. 7%, 15-year bonds at their face amount plus accrued interest of $875. The bonds pay interest semiannually on May 1 and November 1. Purchased $60,000 of Clawhammer 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1. Sept. 1 Received semiannual interest on the Avery Co. bonds. 30 Sold $30,000 of Avery Co. bonds at 98 plus accrued interest of $175 Nov. 1 Received semiannual interest on the Clawhammer bonds. Dec. 31 Accrued $1,050 interest on the Avery Co. bonds. 2017 31 Accrued $600 interest on the Clawhammer bonds. May 1 Received semiannual interest on the Avery Co. bonds May 1 Received semiannual interest on the Clawhammer bonds. 1. Joumalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. 2.If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...
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Gaelic Industries Inc. is an athletic footwear company that began operations on January 1, 2016. The following transactions relate to debt investments acquired by Gaelic Industries Inc., which has a fiscal year ending on December 31 2016 May 1 16 Purchased $75,000 of Avery Co. 7%, 15-year bonds at their face amount plus accrued interest of $875. The bonds pay interest semiannually on May 1 and November 1. Purchased $60,000 of Clawhammer 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1. Sept. 1 Received semiannual interest on the Avery Co. bonds. 30 Sold $30,000 of Avery Co. bonds at 98 plus accrued interest of $175 Nov. 1 Received semiannual interest on the Clawhammer bonds. Dec. 31 Accrued $1,050 interest on the Avery Co. bonds. 2017 31 Accrued $600 interest on the Clawhammer bonds. May 1 Received semiannual interest on the Avery Co. bonds May 1 Received semiannual interest on the Clawhammer bonds. 1. Joumalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. 2.If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?
Transcribed Image Text:Gaelic Industries Inc. is an athletic footwear company that began operations on January 1, 2016. The following transactions relate to debt investments acquired by Gaelic Industries Inc., which has a fiscal year ending on December 31 2016 May 1 16 Purchased $75,000 of Avery Co. 7%, 15-year bonds at their face amount plus accrued interest of $875. The bonds pay interest semiannually on May 1 and November 1. Purchased $60,000 of Clawhammer 6%, 10-year bonds at their face amount plus accrued interest of $150. The bonds pay interest semiannually on May 1 and November 1. Sept. 1 Received semiannual interest on the Avery Co. bonds. 30 Sold $30,000 of Avery Co. bonds at 98 plus accrued interest of $175 Nov. 1 Received semiannual interest on the Clawhammer bonds. Dec. 31 Accrued $1,050 interest on the Avery Co. bonds. 2017 31 Accrued $600 interest on the Clawhammer bonds. May 1 Received semiannual interest on the Avery Co. bonds May 1 Received semiannual interest on the Clawhammer bonds. 1. Joumalize the entries to record these transactions. Be sure to enter the year as part of the date for the first entry on each page. 2.If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?
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