Reference no: EM132676381

Question - In January 2022, Mann Company management decided that it had enough cash to purchase temporary investments in Debt and Stock Securities. During the year the following transactions were carried out:

Feb 1 They bought 800 common shares of SRI for $ 32,000 plus commissions from the broker for $ 800.00.

Mar.1 They bought 500 common shares of FGH for $ 15,000 plus commissions from the broker for $ 300.00

April 1 They bought 60 bonds of $ 1,000 from XYZ at 12% for $ 60,000 plus $ 1,200 of commission from the broker.

July 1 Received a cash dividend of $ .60 per share from SRI.

August 1 Sold 200 SRI shares at $ 42.00 per share less $ 350.00 commissions to the broker.

Sept. 1 Received a cash dividend of $ 1.00 per share from FGH

Oct. 1 Received semi-annual interest on XYZ bonds

Oct. 1 Sold the XYZ bonds for $ 63,000 less commissions to the broker for $ 1,000.

As of December 31, the Fair Market Value of SRI and FGH shares were $ 39.00 and $ 30.00 per share respectively.

Instructions -

a) Prepare the Journal entries for all transactions.

b) Prepare the adjustment entries as of December 31st to record the investments at Fair Market Value. All Securities are considered to be Trading Securities.

c) Prepare the presentation in the Balance Sheet of the Securities as of December 31.