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In January 2020, the management of Carla Vista Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities.
In January 2020, the management of Carla Vista Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $25,000. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 50 $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 $0.50 per share on the Muninger common stock. Aug. Sold 167 shares of Muninger common stock at $65 per share. 1 Received a $1 per share cash dividend on the Tatman common stock. Sept. 1 Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $51,500. At December 31, the fair value of the Muninger common stock was $51 per share. The fair value of the Tatman common stock was $24 per share. Date Account Titles and Explanation Debit Feb. 1 Stock Investments 25000 Cash Mar. 1 Stock Investments 17500 Cash Apr. 1 Debt Investments 52500 Cash July 1 Cash Dividend Revenue Aug. 1 Aug. 1 (To record the receipt of semiannual interest on Yoakem bonds) Oct. 1 (To record the sale of Yoakem bonds) Stock Investments (To record the sale of Yoakem bonds) Stock Investments Debt Investments e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (bl
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