Flounder Corp.$\text{'}$s balance sheet at December $31,2021,$ is presented below.Martinez Corporation purchased debt investments for $$53,900$ on January $1,2022.$ On July $1,2022,$ Martinez received cash interest

of $$1,100.$ Journalize the purchase and the receipt of interest. Assume no interest has been accrued. $($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

FLOUNDER CORP.

Balance Sheet

December $31,2021$

During $2022,$ the following transactions occurred.

On January $1,$ Flounder issued $1,320$ shares of $$40$ par, $7\%$ preferred stock for $$54,120.$

On January $1,$ Flounder also issued $990$ shares of the $$10$ par value common stock for $$23,100.$

Flounder performed services for $$352,000$ on account.

On April $1,2022,$ Flounder collected fees of $$39,600$ in advance for services to be performed from April $1,2022,$ to March

$31,2023.$

Flounder collected $$303,600$ from customers on account.

Flounder bought $$38,610$ of supplies on account.

Flounder paid $$35,420$ on accounts payable.

Flounder reacquired $440$ shares of its common stock on June $1$ for $$28$ per share.

Paid other operating expenses of $$207,020.$

On December $31,2022,$ Flounder declared the annual preferred stock dividend and a $$1\mathrm{.}20$ per share dividend on the

outstanding common stock, all payable on January $15,2023.$

An account receivable of $$1,870$ which originated in $2022$ is written off as uncollectible.