Vermont Corp. enters into the following transactions during 2016: July 1: Paid $10,000 to acquire on the

Question:

Vermont Corp. enters into the following transactions during 2016:

July 1: Paid $10,000 to acquire on the open market $10,000 face value of Maine bonds.

The bonds have a stated annual interest rate of 8% with interest paid semiannually on June 30 and December 31. The remaining life of the bonds on the date of purchase is 31/2 years.

Oct. 23: Purchased 1,000 shares of Virginia common stock at $15 per share.

Nov. 21: Purchased 600 shares of Carolina preferred stock at $8 per share.

Dec. 10: Received dividends of $0.50 per share on the Virginia stock and $1.00 per share on the Carolina stock.

Dec. 28: Sold 700 shares of Virginia common stock at $19 per share.

Dec. 31: Received interest from the Maine bonds.

Required

Prepare all necessary journal entries on Vermont's records to account for its investments during 2016.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...