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Problem 16-02A a-d (Part Level Submission) (Video) In January 2020, the management of Kinzie Company concludes that it has sufficient cash to permit some short-term
Problem 16-02A a-d (Part Level Submission) (Video) In January 2020, the management of Kinzie 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 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 $1,000, 7% Yoakem bonds for s50,000. Interest is payable semiannually on April 1 and October 1. uly1 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 Oct. 1 Oct. 1 Received a $1 per share cash dividend on the Tatman common stock. Received the semiannual interest on the Yoakem bonds 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. Date Account Titles and Explanation Debit Credit Feb. 1 Stock Investments 32400 Cash 32400 Mar. 1 Stock Investments 20000 Cash 20000 Apr. 1 Debt Investments 50000 Cash 50000 July 1 Cash 350 Dividend Revenue 350 Aug. 1 Cash 11600 Stock Investments 10800 Gain on Sale of Stock Investments 800 Sept. 1 Cash 800 Interest Revenue Oct. 1 ||Cash 1750 Interest Revenue 1750 (To record the receipt of semiannual interest on Yoakem bonds) Oct. 1 Cash 49000 Loss on Sale of Debt Investments 1000 Debt Investments 50000 (To record the sale of Yoakem bonds) Stock Investments Feb. 1 32400 Aug. 1 10800 Mar. 1 20000Oct. 1 Dec. 31 Bal. v 52400 Debt Investments Aug. 1 50000Oct. 1 49000 50000 50000
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