Exercise 15-11 Transactions in held-to-maturity, trading, and stock investments LO P1, P2, P4 E a. On February 15, paid $150,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 11% interest (classified as held-to-maturity). b. On March 22, bought 550 shares of Fran Inc. common stock at $34 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran. c. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a. d. On July 30, paid $45,000 cash to purchase MP Inc.'s 10%, six-month notes at par, dated July 30 (classified as trading securities). e. On September 1, received a $0.58 per share cash dividend on the Fran Inc. common stock purchased in part b. f. On October 8, sold 275 shares of Fran Inc. common stock for $40 cash per share. g. 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.) No Transaction General Journal Credit Debit 150,000 x Stock investments Cash 150,000 b. 18,700 Stock investments Cash 18,700 154,125 Cash Interest revenue Stock investments 4,125 150,000 45,000 Fair value adjustment - Trading Cash 45,000 e. 319 Cash Dividend revenue 319 11,000 Cash Stock investments Gain on sale of stock investments 11,000 1,125 Cash Interest revenue 1,125