1.

On February 15, paid $170,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 8% interest (classified as held-to-maturity). On March 22, bought 700 shares of Fran Inc. common stock at $34 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a. On July 30, paid $51,000 cash to purchase MP Inc.'s 7% , six-month notes at par, dated July 30 (classified as trading securities). On September 1, received a $0.66 per share cash dividend on the Fran Inc. common stock purchased in part b. On October 8, sold 350 shares of Fran Inc. common stock for $40 cash per share. On October 30, received a check from MP Inc. for three months interest on the notes purchased in part d. Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. (Use 360 days in a year. Do not round your intermediate calculations. Round your answers to the nearest whole dollar.) 2.Item1 0.16 points eBook Hint References Check my work Check My Work button is now enabled3Item 1Item 1 0.16 points

2.

The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,811,000 Cost of goods sold 887,390 Gross profit 923,610 Operating expenses Salaries expense $ 248,107 Depreciation expense 43,464 Rent expense 48,897 Amortization expensesPatents 5,433 Utilities expense 19,921 365,822 557,788 Gain on sale of equipment 7,244 Net income $ 565,032 Accounts receivable $ 43,500 increase Accounts payable $ 14,800 decrease Inventory 13,825 increase Salaries payable 2,050 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

3.

Salud Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $ 465,000 Accounts receivable increase $ 46,400 Depreciation expense 80,500 Prepaid expenses decrease 17,100 Gain on sale of machinery 23,300 Accounts payable increase 6,200 Wages payable decrease 3,400 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.)