In January 2020, the management of Cullumber 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 800 shares of Muninger common stock for $40,000.

Mar. 1 Purchased 1,000 shares of Tatman common stock for $25,000.

Apr. 1 Purchased 60 $1,140, 5% Yoakem bonds for $68,400. 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 266 shares of Muninger common stock at $65 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 $67,400.

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.

Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. If answer is zero, please enter 0. Do not leave any fields blank.)

-unrealized gain equity

-interest receivable

-gain on sale of debt investments

-stock investments

-market adjustment available for sale

-interest revenue

-cash

-unrealized loss equity

-unrealized gain income

-revenue from investments

-debt investments

-dividend revenue

-loss on sale of stock investments

-unrealized loss income

-loss on sale of debt investments

-market adjustment trading

-gain on sale of stock investments

Date Account/Description Debit Credit

Feb. 1 (1 Debit/1 Credit)

Mar. 1 (1 Debit/1Credit)

Apr. 1 (1 Debit/ 1 Credit)

July 1 (1 Debit/ 1 Credit)

Aug. 1 (1 Debit/ 2 Credits)

Sept. 1 (1 Debit/ 1 Credit)

Oct. 1 (1 Debit/1 Credit)

Oct. 1 (2 Debits/1 Credit)

Stock Investments Debt Investments

Feb. 1 Aug. 1 Apr. 1 Oct. 1

Mar. 1

Dec. 31 Dec. 31

Prepare the adjusting entry at December 31, 2011, to report the investment securities at fair value. All securities are considered to be trading securities.

Date Account/Description Debit Credit

Dec. 31

Show the balance sheet presentation of investment securities at December 31, 2011.

-current liabilities

-long term debt

-other assets

-stockholders equity

-current assets

-property, plant, equipment

-investments

-debt investments at fair value

-short term investments at equity

-interest receivable

-short term investments at fair value

-interest payable

-debt investments at equity

Balance Sheet (1 Debit/ 1 Credit)

$ ___________________

Identify the classification of each account for the income statement accounts.

-revenues

-other revenues and gains

-other expenses and losses

-operating expenses

-cost of goods sold

Interest revenue -

Loss on sale of debt investments -

Dividend revenue -

Gain on sale of stock investments -

Unrealized loss-Income -