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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
In January 2017, 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 640 shares of Muninger common stock for $33,280.
Mar.
Purchased 850 shares of Tatman common stock for $22,100.
1
Apr. 1 Purchased 43 $1,200, 5% Yoakem bonds for $51,600. Interest is payable
semiannually on April 1 and October 1.
July 1 Received a cash dividend of $0.56 per share on the Muninger common stock.
Aug.
Sold 213 shares of Muninger common stock at $60 per share.
1
Sept.
Received a $1 per share cash dividend on the Tatman common stock.
1
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Oct. 1 Sold the Yoakem bonds for $50,600.
At December 31, the fair value of the Muninger common stock was $53 per share. The fair
value of the Tatman common stock was $25 per share. (a) Your answer is partially correct. Try again.
Journalize the transactions and post to the accounts Debt Investments and Stock
Investments. (Use the T-account form.) (Round answers to 0 decimal places, e.g. 5,275.
Credit account titles are automatically indented when amount is entered. Do not indent
manually. Record journal entries in the order presented in the problem. If no entry is
required, select "No entry" for the account titles and enter 0 for the amounts. If the
ending balance is 0 select Dec. 31 Bal. for the date and enter 0 for the normal balance for
that account.)
Dat Account Titles and
e Explanation Debi Credi
t
t Stock Investment 33,920 Cash 33,920 Stock Investment 22,950 Cash 22,950 Debt Investments 52,800 Cash 52,800 Cash 358.4 Dividend Revenu Cash 358.4 12,780 Stock Investment 12,567 Gain on Sale of S 213 Cash 850 Dividend Revenu Cash Interest Revenue 850 1,000 1,000 (To record
interest)
Oct.
1 Cash Loss on Sale of D Debt Investments (To record sale) 1,265 1,000 52,800
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