In January 2017, the management of Kinzie Company concludes that it has sufficie

Question

In January 2017, the management of Kinzie 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 510 shares of Muoingen common stock for $26,010. Mar. 1 Purchased 880 shares of TatmaA common stock for $22.880 Apr. 1 Purchased 57 $1,100, 990 Yoake abonds for $62,700. Interest is payable semiannually on April 1 and October 1 Julv 1 Received a cash dividend of s0.50 per share on the MunisReommon stock. Aug. 1 Sold 170 shares of MupiRAe common stock at $62 per share. ept. Received a $1 per share cash dividend on the Tata common stock Oct. 1 Received the semiannual interest on the Yoakeobonds. Oct. 1 Sold the YoakeRbonds for $61,700 At December 31, the fair value of the Muoiagancommon stock was $52 per share. The fair value of the TatRo30 common stock was $25 per share

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Journal Entries - Kinzie Company Date Particulars Debit Credit 1-Feb Stock Investment Dr $26,010.00            To Cash $26,010.00 (To record investment in share of Muninger) 1-Mar Stock Investment Dr $22,880.00            To Cash $22,880.00 (To record investment in share of Tatman) 1-Apr Debt Investment Dr $62,700.00            To Cash $62,700.00 (To record investment in bond) 1-Jul Cash Dr (510*$0.50) $255.00            To Dividend revenue $255.00 (To record dividend revenue) 1-Aug Cash Dr $10,540.00            To Stock investment ($26,010/510*170) $8,670.00            To Gain on sale of stock investment $1,870.00 (To record sale of stock investment) 1-Sep Cash Dr (880*$1) $880.00            To Dividend revenue $880.00 (To record dividend revenue) 1-Oct Cash Dr (62700*4.50%) $2,822.00            To Interest revenue $2,822.00 (To record interest revenue) 1-Oct Cash Dr $61,700.00 Loss on sale of debt investment Dr $1,000.00            To Debt Investment $62,700.00 (To record sale of debt ivnestment)

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