Unifying Concepts: Investments in Debt and Equity Securities On January 1, Heiress Company had surplus cash and decided to make some long-term investments.

The following transactions occurred during the year:

Jan. 1 Purchased thirty $1,000, 11% bonds of McComb Corporation at face value.

Semiannual interest payment dates are January 1 and July 1 each year. The bonds are classified as available-for-sale.

Feb. 15 Purchased 3,000 shares of Gordon Corporation stock at $28 per share, plus brokerage fees of $1,100. The stock is classified as available-for-sale.

July 1 Received a semiannual interest payment on the McComb Corporation bonds.

Sept. 30 Received an annual cash dividend of $1.00 per share on Gordon Corporation stock.

Oct. 15 Sold 1,000 shares of the Gordon Corporation stock at $33 per share.

Dec. 31 Adjusted the accounts to accrue interest on the McComb Corporation bonds.

Required:

1. Prepare journal entries for these transactions.

2. The market quote for McComb Corporation’s bonds at closing on December 31 was 103. The Gordon Corporation stock closed at $32 per share. Prepare a partial balance sheet showing all the necessary data for these securities. Assume that Heiress exercises no significant influence over its investees.