In January 2020, the management of Oriole 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 Purchased800shares of Muninger common stock for $44,000.

Mar. 1 Purchased1,000shares of Tatman common stock for $25,000.

Apr. 1 Purchased70$1,240,9% Yoakem bonds for $86,800. Interest is payable semiannually on April 1 and October 1.

July 1 Received a cash dividend of $0.50per share on the Muninger common stock.

Aug. 1 Sold266shares of Muninger common stock at $65 per share.

Sept. 1 Received a $1per 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 $85,800.

At December 31, the fair value of the Muninger common stock was $56per share. The fair value of the Tatman common stock was $24per share.

a.

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. 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.)

b.

Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities.(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.)

c.

Show the balance sheet presentation of investment securities at December 31, 2020.

d.

give the statement classification of each income statement account.