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.  

  At December 31, the fair value of the Superior common stock was $55 per share. The fair value of the Pawlik common stock was $25 per share.

Feb. 1 Purchased 400 shares of Superior common stock for $21,200, plus brokerage fees of $470. Mar. 1 Purchased 630 shares of Pawlik common stock for $16,380, plus brokerage fees of $350. Apr. 1 Purchased 40 $1,200, 8% Venice bonds for $48,000, plus $1,300 brokerage fees. Interest is payable     semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.55 per share on the Superior common stock. Aug. 1 Sold 100 shares of Superior common stock at $65 per share less brokerage fees of $170. Sept. 1 Received a $2 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 $48,000 less $1,300 brokerage fees.

Explanation / Answer

Feb.1

Stock Investments ........$21670

Cash .........................$$21670

Mar.1

Stock Investments ........$16730

Cash ...........................$16730

Apr.1

Debt Investments ..........$49300

Cash............................$49300

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