Unifying Concepts: Short-Term Investments in Stocks and Bonds JAG Manufacturing Company produces and sells one main product. There is significant seasonality in demand, and the unit price is quite high. As a result, during the heavy selling season, the company generates cash that is idle for a few months. The company uses this cash to acquire investments. The following transactions relate to JAG’s investments during 2009:

Mar. 15 Purchased 1,200 shares of Gates Corporation stock at $21 per share, plus brokerage fees of $815. This stock is classified as trading.

Apr. 1 Purchased $39,000 of 10% bonds of Micro Company. This investment is classified as available-for-sale.

June 3 Received a cash dividend of $0.75 per share on the Gates Corporation stock.

Oct. 1 Received a semiannual interest payment of $1,950 on the Micro Company bonds.

10 Sold 400 shares of the Gates Corporation stock at $26 per share less a $295 brokerage fee.

Dec. 31 Recorded $975 of interest earned on the Micro Company bonds for the period October 1, 2009, through December 31, 2009.

31 The market price of the Gates Corporation stock was $19 per share; the market price of the Micro Company bonds was $38,560.

Required:

Prepare journal entries to record these transactions.