After issuing bonds in Chapter 15, Lee Consulting Corporation has some excess cash on hand. Michael Lee, the corporation's major shareholder, intends to invest some of the cash for different time periods to get better returns than from the bank and to have cash available when needed to expand the business into a new market. Assume Lee Consulting Corporation completed the following investment transactions:
2017
Apr. 15 The business purchased 300 common shares of Canadian Tire Corporation, Limited for $114.00 per share. Michael Lee intends to hold this investment for less than a year. He thinks the share value will increase and knows Lee Consulting will need the cash for operations in less than a year. Assume there were no brokerage fees.
Jun. 2 Purchased 2,000 of the 6,000 common shares of Landers Consulting Ltd. at a cost of $40,000. Landers Consulting is a company formed by a colleague of Lee, so Lee hopes the investment will lead to future business opportunities for Lee Consulting.
15 Purchased $10,000 of 6 percent, four-year bonds of Consulting Suppliers Inc. at 115. Lee intends to hold these to maturity since the effective interest rate is still better than other investments he assessed.
Jul. 1 Received the quarterly cash dividend of $0.55 per share on the Canadian Tire investment.
Dec. 10 Received an annual dividend of $0.50 per share from Landers Consulting Ltd. Also received word that at November 30, Landers' year end, net income was $60,000.
15 Received semi-annual interest of $300 on the Consulting Suppliers Inc. bonds. Amortized the premium using the straight-line method.
Required
1. Record the transactions in the general journal of Lee Consulting Corporation. Disregard any commissions on purchases and sales of investments.
2. Post entries to the Investment in Landers Consulting Ltd. Common Shares T-account.
Determine its balance at December 10, 2017, after the transaction shown on that date.