Bell Company started business during the year. At the end of its first fiscal year, it had the following marketable securities:

......................................................................................... Cost Market Value

Per Share ......Total ..............Per Share.........Total

100 shares of Denson Company common stock........... $43.25..........$4,325................ $31.15.........$3,115

400 shares of Republic Inc. common stock ...................$ 5.60...........$2,240................$ 6.10...........$2,440

Total

$6,565 $5,555

During the year, the following transactions took place:

1. Feb. 16 - Sold 80 shares of Denson common stock for $45.70 per share, less brokerage fees of $37.

2. May 10 - Cash dividends of $1.00 per share were received on the Denson common stock. None of the other investments paid dividends.

3. July 1 - Purchased one hundred, 10%, Smith Company bonds with a remaining life of 10 years at a price of 98, plus accrued interest. Each bond has a face value of $1,000. Interest is payable April 1 and October 1 of each year. Smith uses the straight-line method for amortizing any premiums or discounts.

4. Oct. 1 - Received the semiannual interest on Smith bonds and amortized any premiums or discounts.

5. Dec. 27 - Purchased 300 shares of Evans Co. common stock at $40 per share, plus brokerage fees of $160.

6. Dec. 31- Recorded any accruals of interest and amortizations needed to bring accounts up-to-date.

At the end of the year, the market values of the investments were:

Denson Company common stock, $38 per share

Republic Inc. common stock, $6 per share

Evans Company common stock, $42 per share

Smith Company bonds, 95

Bell has the following intentions regarding its investments:

-- Denson and Republic common stock are both ready for sale when the price is right, which may be tomorrow or next year.

-- Evans common stock will be sold within a few days, so that a capital gain can be earned on short-term price differences.

-- Smith bonds will be held until they mature.

None of the investments in stock constitute an ownership level of more than five percent of the investees outstanding stock.

Instructions:

Prepare the general journal entries to record all the transactions during the year. For any unrealized gains or losses, make it clear whether they appear on the income statement or on the balance sheet.

Check figure: total interest income for the year is $5100 (-2500+5000+50+2500+50); total realized gain is $159; total unrealized gains are $440 on the income statement and $1065 in OCI.