During 2013, Dana Company decided to begin investing its idle cash in marketable securities. The information contained

Question:

During 2013, Dana Company decided to begin investing its idle cash in marketable securities. The information contained below relates to Dana's 2013 marketable security transactions:

Feb. 3 Purchased 3,000 shares of Blair Company common stock for $12 per share.

Apr. 1 Purchased $20,000 face value of Solomon Inc. 12% bonds at par plus accrued interest; interest on the bonds is payable each June 30 and December 31.

June 30 Received the semiannual interest on the Solomon bonds and a $0.25 per share dividend on the Blair common stock.

Sept. 1 Purchased 4,000 shares of Woodman Corporation common stock for $22 per share.

Nov. 1 Purchased $30,000 face value of Edwards Company 11% bonds at par plus accrued interest; interest on the bonds is payable each June 1 and December 1.

Dec. 1 Received the interest on the Edwards bonds and sold the bonds for $30,300.

30 Received a $0.25 dividend per share on the Blair common stock and sold all the shares for $35,300.

31 Received the interest on the Solomon bonds. The following information is available concerning the yearend market prices:

During 2013, Dana Company decided to begin investing its idle

Required:
1. Record Dana's investment transactions for 2013.
2. Show the items of income or loss on temporary investments Dana reports on its 2013 income statement.
3. Show the carrying value of Dana's investment account on its December 31, 2013, balance sheet.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...