In January 2014, the management of Kvitne Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occured.

Feb 1 Purchased 600 shares of Muninger common stock for $32,400.

Mar 1 Purchased 800 shares of Tatman common stock for $20,000.

Apr 1 Purchased 50 $1000, 7% Yoakem bonds for $50,000. Interest is payable semiannually on April 1 and October 1.

July 1 Received a cash dividend of $0.60 per share on Muninger common stock.

Aug 1 Sold 200 shares of Muninger common stock at $58 per share.

Sept 1 Received a $1 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 $49,000.

Instructions

(a) Journalize transactions and post to the accounts Debt Investments and Stock Investments. Specifically T-Accounts method

(b) Show the balance sheet presentation of investment securities at December 31, 2014.

(c) Identify the income statement accounts and give the statement classification of each account.