Question
In January 2022, the management of Kinzie Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities.
In January 2022, the management of Kinzie Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Purchased 600 shares of Muninger common stock for $32,400. Mar. 1 Apr. 1 Purchased 800 shares of Tatman common stock for $20,000. Purchased 50 of $1,000, 7% Yoakem bonds for $50,000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.60 per share on the Muninger common stock. July 1 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 and Tatman common stocks were $55 and $24 per share respectively. These stock Investments by Kinzie Company provide less than a 20% ownership interest.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started