Fleet Inc. is an athletic footware company that began operations on jan 1, 2012. the following transactions relate to debt investments acquired by Fleet Inc. which has fiscal year ending on december 31:
2012
Mar 1. Purchased $36,0000of madison Co. 5% 10-year bonds at face value plus accrued interest of $15. the bonds pay interest semiannually on february 1st and august 1
apr 16 purchased $45,0000 of Westville 4%, 15-year bonds at face value plus accrued interest semianually on april 1st and october 1st.
aug 1. received semiannuall interest on the madison co. bonds
sep 1 sold $12,0000 of madison co bonds at 98 plus accrued interest of $50
oct 1 received semiannual interest on westville bonds
dec 31 accrued $500 interest on Madison Co. bonds
dec 31 accrued $450 interest on westville bonds
2013
feb 1 received semiannual interest on the madison co bonds
apr 1 received semiannual interest on the Westville bonds
Instructions
1. Journalize the entries to record the transactions
2. if the bond portfolio was classified as available-for-sale, what impact would that have on financial statement disclosure