On January 1, Draxton Company had surplus cash and decided to make some long-term investments. The following transactions occurred during the year: Jan. 1 — Purchased twenty $1,000, 12% bonds of Sifco Corporation at face value. Semiannual interest payment dates are January 1 and July 1 each year. The bonds are classified as available-for-sale. Feb. 15 Purchased 4,000 shares of Porto Corporation stock at $35 per share, plus brokerage fees of $1,500. The stock is classified as available-for-sale. July 1. Received a semiannual interest payment on the Sifco Corporation bonds. Sep. 30 Received an annual cash dividend of $1.50 per share on Porto Corporation stock. Oct. 15 Sold 1,000 shares of the Porto Corporation stock at $42 per share. Dec. 31 Adjusted the accounts to accrue interest on the Sifco Corporation bonds. 1. Prepare journal entries for these transactions. 2. The market quote for Sifco Corporation’s bonds at closing on December 31 was 104. The Porto Corporation stock closed at $40 per share. Prepare a partial balance sheet showing all the necessary data for these securities. Assume that Draxton exercises no sig- nificant influence over its investees.