P16.2A (LO 2, 3) (Financial Statement In January 2020, the management of Kinzie Company con- cludes 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. Purchased 800 shares of Tatman common stock for $20,000. Mar. 1 Apr. 1 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. Sold 200 shares of Muninger common stock at $58 per share. Received a $1 per share cash dividend on the Tatman common stock. Received the semiannual interest on the Yoakem bonds. July 1 Aug. 1 Sept. 1 Oct. 1 Oct. 1 Sold the Yoakem bonds for $49,000. At December 31, the fair value of the Muninger common stock was $55 per share. The fair value of the Tatman common stock was $24 per share. Instructions a. Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) 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. c. Show the balance sheet presentation of investment securities at December 31, 2020. d. Identify the income statement accounts and give the statement classification of each account.

P16.2A (LO 2,3) In January 2020, the management of Kinzic Company conctudes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. I Purchased 600 shares of Muninger common stock for $32,400. Mar. 1 Purchased 800 shares of Tatman common stock for $20,000. Apr. 1 Purchased 50 of $1,000,7% Yoakem bonds for $50,000. Interest is payable semiannually on April 1 and October 1. July I Received a cash dividend of $0.60 per share on the Muninger common stock. 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 common stock was $55 per share. The fair value of the Tatman common stock was $24 per share. Instructions a. Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) 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. c. Show the balance sheet presentation of investment securities at December 31, 2020. d. Identify the income statement accounts and give the statement classification of each account