The Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the

Question:

The Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2006 Noonan's portfolio of investments available for sale consisted of the following equity securities:

During the first half of 2007, Noonan engaged in the following investment transactions:
Jan. 6 Sold one-half of the Sachs shares for $45 per share
Feb. 3 Purchased 700 shares of Jackson Corporation common stock for $45 per share
Mar. 31 Dividends of $2,500 were received on the investments, and the following information is available on market prices:
Security Fair Value Per Share
Keene Company ..... $59
Sachs, Inc. ....... 45
Bacon Company ....... 70
Jackson Corporation .... 43
Apr. 14 Purchased 300 shares of Quinn Company preferred stock for $52 per share
May 11 Sold the remainder of the Sachs shares for $42 per share
June 30 Dividends of $2,800 were received on investments, and the following information is available:
Security Fair Value Per Share
Keene Company ...... $62
Bacon Company ........ 69
Jackson Corporation ..... 46
Quinn Company ........ 50

Required
1. Record Noonan's investment transactions for January 6 through June 30, 2007.
2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2007.
3. Show how the preceding items are reported on the first and second quarter 2007 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the nextyear.

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