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During 2017, Turnball Associates had the following short-term investment transactions: Purchased 2,000 shares of Gehring preferred stock for $29 per...

During 2017, Turnball Associates had the following short-term investment transactions:

  1. Purchased 2,000 shares of Gehring preferred stock for $29 per share cash plus $2,000 of broker's fees.
  2. Purchased $50,000, 10%, 10 year bonds Wooderson common stock for $45,000 cash.
  3. Received a $.50 per share cash dividend on the Gehring common stock.
  4. Received a semi-annual interest payment on the Wooderson bonds.
  5. Sold 800 shares of Gehring common stock for $33 per share cash less $500
  6. broker's fees.
  7. Purchased 1,500 shares of Kitselton common stock for $20 per share cash.
  8. On December 31, the fair market values of the stocks were: Gehring $32 per
  9. share and Kitselton $18 per share. The fair market value of the Wooderson
  10. bonds is $40,000. 

Instructions

  1. (a) Journalize the transactions, then post the transactions to the attached T- accounts—you may want to post the first 6 transactions to the accounts before making the journal entry for transaction 7.
  2. (b) Indicate the financial statement presentation of the investment related accounts at the end of the year assuming the investments were purchased as trading securities.
  3. (c) Indicate the financial statement presentation of the investment related accounts at the end of the year assuming the investments were purchased as available for sale securities. 

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