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Plankton Corp. had the following transactions related to short-term investments during 2020: 1. Purchased 9,000 shares of Gary Corp. preferred stock fo $42.80 per share

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Plankton Corp. had the following transactions related to short-term investments during 2020: 1. Purchased 9,000 shares of Gary Corp. preferred stock fo $42.80 per share cash plus $1,800 of broker's fees. 2. Purchased a $70,000, 6%, 10-year bond of Karen Corporation for $74,000 cash. Interest is paid semi-annually. 3. Received an $0.80 per share cash dividend on the Gary Corp. preferred stock. 4. Sold 4,000 shares of the Gary Corp. preferred stock for $46 per share cash less $500 broker's fees. 5. Received a semi-annual cash interest payment from Karen Corporation. Part A: Give the general journal entries required to record the above short-term investment transactions. General Journal Account Titles Account Titles DR (debits) (credits) CR Part B: Download and open one of the following files (use your preferred format). Post your entries to the T-accounts and balance the accounts. Be sure to save your file. 10 Exam 5 T-accounts.pdf a 10 Exam 5 T-accounts.xlsx Part C: At the end of the period, the market value of the Gary Corp. preferred stock is $45.50 per share and the market value of the Karen bond is $75,000. Give the adjusting journal entry required at the end of the period. Account Titles (debits) General Journal Account Titles (credits) DR CR Part D: Post your adjusting entry to the T-accounts and balance the accounts. Be sure to save your file (you will submit your file in the next question). Part E: Indicate the name and balance of the investment-related accounts to be reported on Plankton's financial statements at the end of the period, assuming the bond investment was purchased as a trading security: Income Statement: Name of Account Balance Sheet: Name of Account Amount Amount Part F: Short Answer How would your answers to Part E change if the bond investment had been purchased as an available for sale security

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