During the current year, Big Band Corporation has the following transactions related to its short-term investments. 1. Purchased $40,000, 8%, 20 year bonds of Lennon Corporation, paying $36,000 cash. 2. Purchased 600 shares of Harrison common stock for $23 per share plus $1,200 broker's fees. 3. Sold 200 shares of Harrison common stock for $28 per share less $200 broker's fees. 4. Received a semi-annual interest payment from Lennon Corporation, S. Received a $3 per share dividend on the Harrison common stock. 6. At the end of the year, the market value of the Harrison common stock was $29 per share and the market value of the Lennon bond was $37,500. REQUIRED: A. Prepare the journal entries necessary for the current year to account for the investment transactions of Big Band Corporation. Note you may want to post and balance the accounts AFTER transaction before making the entry for transaction 6. GENERAL JOURNAL Date Account Titles DR CR m 1 2 3 4 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 3. Post your entries to the T-accounts below: Cash Marketable Securities Adjustment to Market in Unrealized Loss/Gain on Valuation (EQUITY) 6 Dividend Revenue Realized Loss/Gain on Sale 8 9 50 61 Interest Revenue Unrealized Loss/Gain on Valuation (DEBT) 63 64 65 C. Indiciate the accounts and their balances that would appear on Big Band's financial statements at the end of the current year assuming that the investments had been purchased as trading securities. Income Statement Balance Sheet: D. Indicate the accounts and their balances that would appear on Big Band's financial statements at the end of the year assuming instead that the investments had been purchased as available for sale securities. Income Statement: Balance Sheet