In January $2027,$ the management of Ivanhoe Company concludes that it has sufficient cash to permit some short$-$term investments in debt and equity securities$.$ During the year, the following transactions occurred.

Feb. $1$ Purchased $700$ shares of Muninger common stock for $$38,500.$

Mar. $1$ Purchased $900$ shares of Tatman common stock for $$22,500.$

Apr. $1$ Purchased $50$ of $$1,050,6\%$ Yoakem bonds for $$52,500.$ Interest is payable semiannually on April $1$ and October $1.$

July $1$ Received a cash dividend of $$0\mathrm{.}60$ per share on the Muninger common stock.

Aug. $1$ Sold $233$ shares of Muninger common stock at $$65$ per share.

Sept. $1$ Received a $$2$ per share cash dividend on the Tatman common stock.

Oct. $1$ Received the semiannual interest on the Yoakem bonds.

Oct. $1$ Sold the Yoakem bonds for $$51,100.$

At December $31,$ the fair value of the Muninger and Tatman common stocks were $$56$ and $$24$ per share respectively. These stock investments by Ivanhoe Company provide less than a $20\%$ ownership int

In January $2027,$ the management of Ivanhoe Company concludes that it has sufficient cash to permit some short$-$term investments in debt and equity securities$.$ During the year, the following transactions occurred.

Feb. $1$ Purchased $700$ shares of Muninger common stock for $$38,500.$

Mar. $1$ Purchased $900$ shares of Tatman common stock for $$22,500.$

Apr. $1$ Purchased $50$ of $$1,050,6\%$ Yoakem bonds for $$52,500.$ Interest is payable semiannually on April $1$ and October $1.$

July $1$ Received a cash dividend of $$0\mathrm{.}60$ per share on the Muninger common stock.

Aug. $1$ Sold $233$ shares of Muninger common stock at $$65$ per share.

Sept. $1$ Received a $$2$ per share cash dividend on the Tatman common stock.

Oct. $1$ Received the semiannual interest on the Yoakem bonds.

Oct. $1$ Sold the Yoakem bonds for $$51,100.$

At December $31,$ the fair value of the Muninger and Tatman common stocks were $$56$ and $$24$ per share respectively. These stock investments by Ivanhoe Company provide less than a $20\%$ ownership interest

Journalize the transactions and post to the accounts Debt Investments and Stock Investments. $($Use the T$-$account form.$)($Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts.$)$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$($To record the receipt of semiannual interest on Yoakem bonds$)$

$$

$$

$($To record the sale of Yoakem bonds$)$

Stock Investments

$\backslash$table

Prepare the adjusting entry at December $31,2027,$ to report the investment securities at fair value. All securities are considered to be trading securities$.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter O for the amounts.$)$

$\backslash$table$[[$Date$,$Account Titles and Explanation,Debit,Credit$],[$Dec$.31,,,]]$

Show the balance sheet presentation of investment securities at December $31,2027.$

Ivanhoe Company Balance Sheet $($Partial$)$

Give the statement classification of each income statement account.

Income Statement Account

Category

Dividend Revenue

Gain on Sale of Stock Investments

Interest Revenue

Loss on Sale of Debt Investments

Unrealized Loss$-$Income