Fleet Inc. is an athletic footware company that began operations on January 1, 2012. The following transactions relate to debt investments acquired by fleet Inc which has a fiscal year ending december 31.
2012
- Mar. 1 Purchased $36,000 of Madison Co. 5% 10-year bonds at face value plus plus accrued interest of $150. The binds pay interest semiannually on Feb 1 and Aug 1
- Apr 16 Purchased $45,000 of Westville 4%, 15- year bonds at face value plus accrued interest of $75. The bonds pay interest semiannnualy on Apr 1 & Oct 1
- Aug 1 Received semiannual interest on the Madison Co. bonds
- Sept 1 Sold $12,000 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
- 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 these transactions
2. if the pond portfolio was classified as available for sale, what impact would this have on financial statement disclosure?