Feb. 1 Purchased 600 shares of Hiens common stock for $31,800, plus brokerage fees of $600.
Mar. 1 Purchased 800 shares of Pryce common stock for $20,000, plus brokerage fees of $400.
Apr. 1 Purchased 50 $1,000, 7% Roy bonds for $50,000, plus $1,000 brokerage fees. Interest is payable semiannually on April 1 and October 1.
July 1 Received a cash dividend of $0.60 per share on the Hiens common stock.
Aug. 1 Sold 200 shares of Hiens common stock at $58 per share less brokerage fees of $200.
Sept. 1 Received a $1 per share cash dividend on the Pryce common stock.
Oct. 1 Received the semiannual interest on the Roy bonds.
Oct. 1 Sold the Roy bonds for $50,000 less $1,000 brokerage fees.
At December 31, the fair value of the Hiens common stock was $55 per share. The fair value of the Pryce common stock was $24 per share.
Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) (List multiple debit/credit entries in descending order of amount. If answer is zero, please enter 0, do not leave any fields blank.)
Prepare the adjusting entry at December 31, 2008, to report the investment securities at fair value. All securities are considered to be trading securities.
Show the balance sheet presentation of investment securities at December 31, 2008.
Identify the classification of each account for the income statement accounts.
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