1. Kit Kat purchased $10,000 of US Treasury bonds at their face amount on January 1, 2019. Brokerage commission was $1,000. The bonds have an interest rate of 5% received semiannually June 30 and December 31.

• Journalize purchasing the bond and the first interest payment on June 30.

On December 31 Kit Kat sold the treasury bonds at 105, which is a price equal to 105% of their face amount.

• Journalize the sale of the bonds

2. Homer Company purchases $18,000 of US Treasury bonds at their face amount on March 17, 2016, plus accrued interest for 45 days. The bonds have an interest rate of 6%, payable semiannually: July 31 and January 31.

On July 31, Homer Company receives a semiannual interest payment.

1. Homer Companys accounting period ends on December 31 of each year, journalize the adjusting entry for accrued interest

On January 31, 2017, Homer received semiannual interest payment

On January 31, 2017 Homer company sells the Treasury bonds at 98, which is a price equal to 98% of their face amount

Journalize these transactions

3. On September 1, 1,550 shares of Jonny Top are acquired at a price of $24 per share plus a $40 brokerage commission.

On October 14, a $0.60 per share dividend was received on the Jonny Top stock.

On November 11, 775 shares of Jonny Top stock were sold for $20 per share less a $45 brokerage commission.

Prepare the journal entries for the original purchase, dividend, and sale.

4. Kit Kat purchased 40% interest in Jonny Cake corporation common stock on January 2, 2018 for $350,000.

On December 31 Jonny Cake reported net income of $105,000.

During the year, Jonny Cake declared and paid cash dividends of $45,000.

Kit Kat sold Jonny Cakes stock on January 1, 2019 for $400,000.

Journalize these transactions for Kit Kat

5 On December 31, the cost of a companys trading securities portfolio was $79,200, and the fair value was $76,800.

On December 31, the cost of a companys trading securities portfolio was $80,200, and the fair value was $82,800.

Prepare the December 31 adjusting entries to record the unrealized gain or loss on trading investments.