1) Flynn Company purchased 70 Rinehart Company 6%, 10-year, $1,000 bonds on January 1, 2020, for $70,000. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Flynn Company sold 40 of the bonds for $38,500.

Instructions: Prepare the journal entries to record the transactions described above.

2) Hulse Company had the following transactions pertaining to stock investments.

Feb. 1 Purchased 600 shares of Wade common stock (2%) for $7,200 cash.

July 1 Received cash dividends of $1 per share on Wade common stock.

Sept. 1 Sold 300 shares of Wade common stock for $4,300.

Dec. 1 Received cash dividends of $1 per share on Wade common stock.

Instructions: Journalize the transactions.