Manson Incorporated reported the following current asset on its December 31, 2006 balance sheet:

Temporary investment in available-for-sale securities (at cost) ...... $63,475

Less: Allowance for change in value of investment .......... (2,980)

Temporary investment in available-for-sale securities (at fair value) .. $60,495

An analysis of Manson's temporary investments on December 31, 2006 reveals the following:

During 2007 the following transactions related to Manson's temporary investments occurred:
Jan. 6 Received a $265 dividend on the Turben Company common
Mar. 31 Received the semiannual dividend of $500 on the Web Engines preferred
On March 31, 2007 the following information is available concerning Manson's temporary investments:
Equity Security Fair Value
Turben Company .... $13,470
Cook Corp. ....... 13,765
Hill Corp. ......... 18,940
Web Engines ....... 15,500

June 30 Received a $375 dividend on the Cook Corp. common and a $700 dividend on the Hill Corp. common
On June 30, 2007 the following information is available concerning Manson's temporary investments:
Equity Security Fair Value
Turben Company ..... $13,300
Cook Corp. ....... 14,125
Hill Corp. ....... 19,300
Web Engines ...... 15,400
July 6 Sold the Turben Company common for $13,750
Sept. 29 Received the semiannual dividend of $500 on the Web Engines preferred
On September 30, 2007 the following information is available concerning Manson's temporary investments:
Equity Security Fair Value
Cook Corp. ....... $14,230
Hill Corp. ......... 19,500
Web Engines ....... 15,900

Nov. 2 Sold the Hill Corp. common for $19,780
Dec. 30 Received a $375 dividend on the Cook Corp. common
On December 31, 2007, the following information is available:
Equity Security Fair Value
Cook Investment Corp. ... $14,280
Web Engines ........ 16,400

Required
1. Assuming Manson prepares quarterly financial statements, prepare journal entries to record the preceding information.
2. Show the items of income or loss from temporary investment transactions that Manson reports for each quarter of 2007?
3. Show how Manson's temporary investments are reported on the balance sheet on March 31, 2007; June 30, 2007; September 30, 2007; and December 31,2007.

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Equity Security 400 shares of Turben Company, com 500 shares of Cook Corp., common 700 shares of Hill Corp., common 200 shares of Web Engines, preferred Totals Cost $14,275 12,650 17,450 19,100 $63,475 Fair Value $13,590 13,175 18,180 15,550 60,495 mon