There are 6 questions.

Investments in Bonds and Stock

Swartz Inc. enters into the following transactions during 2016:

Required:

Prepare all necessary journal entries on Swartz's records to account for its investments during 2016. Indicate the effect on financial statement items by selecting "" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement.

1. July 1: Paid $12,000 to acquire on the open market $12,000 face value of Gallatin bonds. The bonds have a stated annual interest rate of 6% with interest paid semiannually on June 30 and December 31. The bonds mature in 5 years.

2. Oct. 23: Purchased 560 shares of Eagle Rock common stock at $19 per share.

3. Nov. 21: Purchased 160 shares of Montana preferred stock at $29 per share.

4. Dec. 10: Received dividends of $1.6 per share on the Eagle Rock stock and $1.8 per share on the Montana stock.(The table is the same as above except for the date)

5. Dec. 28: Sold 440 shares of Eagle Rock common stock at $24 per share. (The table is the same as above except for the date)

6. Dec. 31: Received interest from the Gallatin bonds. (The table is the same as above except for the date)

Journal Balance Sheet Stockholders' Liabilities+ Equity Date 2016 July 1 Description Debit Credit Assets