In January 2017, the management of Kinzie 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 $1,000, 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 the 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

At December 31, the fair value of the Muninger common stock was $55 per share. The fair value of the Tatman common stock was $24 per share

1) Journalize the transactions and post to the accounts Debt Investments and Stock Investments (use the T-account form)

2) Prepare the adjusting entry at Dec 31, 2017, to report the investment securities at fair value. All securities are considered to be trading securities.

3) Show the balance sheet presentation of investment securities at Dec 31, 2017

4) Identify the income statement accounts and give the statement classification of each account