1. 1.Prepare journal entries for each of these transactions.

a. September 5^th: Purchased 25,000 shared of Allison Company common stock for $12 per share. These shares were classified as Fair Value Through Net Income (FVTNI).

b. July 1^st: Purchased $500,000 face value of Boeing Corporation 4% Coupon Bonds which mature in 10 years. The bonds were purchased for $461,027 which implied an effective rate of 5% (2.5% per period). The bonds pay interest on June 30^th and December 31^st of each year. The bonds were classified as Held to Maturity (HTM).

c. November 15^th: Received a $250 dividend on the Allison Company common stock.

d. December 1^st: Purchased $300,000 face value of Microsoft Bonds. The bonds had a 4% coupon rate and were purchased at face value. The bonds pay interest on March 31^st and September 30^th of each year. These bonds were classified as Available for Sale (AFS).