In January 2012, the management of Stefan Company concludes that it has sufficie

Question

In January 2012, the management of Stefan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 600 shares of Superior common stock for $31,800, plus brokerage fees of $600. Mar. 1 Purchased 800 shares of Pawlik common stock for $20,000, plus brokerage fees of $400. Apr. 1 Purchased 50 $1,000, 7% Venice bonds for $50,000, plus $1,000 brokerage fees. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.60 per share on the Superior common stock. Aug. 1 Sold 200 shares of Superior common stock at $58 per share less brokerage fees of $200. Sept. 1 Received a $1 per share cash dividend on the Pawlik common stock. Oct. 1 Received the semiannual interest on the Venice bonds. Oct. 1 Sold the Venice bonds for $50,000 less $1,000 brokerage fees. At December 31, the fair value of the Superior common stock was $55 per share. The fair value of the Pawlik common stock was $24 per share. Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.)

Explanation / Answer

http://www.solutioninn.com/business/accounting/investments/in-january-2012-the-management-of-stefan-company-concludes-that http://www.google.com.pk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CDQQFjAB&url=http%3A%2F%2Fchs.carmelschools.org%2Fdownload.axd%3Ffile%3Db3a5698b-14b5-46d9-b777-5411eff8e113%26dnldType%3DResource&ei=VxkHUYmgCoiDtAbjloHoDA&usg=AFQjCNG1sr1OuCax6GJYgMPh6p3yMhwdDQ&bvm=bv.41524429,d.Yms

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