In January 2012, the management of Stefan 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 400 shares of Superior common stock for $21,200, plus brokerage fees of $470. |
| Mar. 1 |
|
Purchased 630 shares of Pawlik common stock for $16,380, plus brokerage fees of $350. |
| Apr. 1 |
|
Purchased 40 $1,200, 8% Venice bonds for $48,000, plus $1,300 brokerage fees. Interest is payable semiannually on April 1 and October 1. |
| July 1 |
|
Received a cash dividend of $0.55 per share on the Superior common stock. |
| Aug. 1 |
|
Sold 100 shares of Superior common stock at $65 per share less brokerage fees of $170. |
| Sept. 1 |
|
Received a $2 per share cash dividend on the Pawlik common stock. |
| Oct. 1 |
|
Received the semiannual interest on the Venice bonds. |
| Oct. 1 |
|
Sold the Venice bonds for $48,000 less $1,300 brokerage fees. |
At December 31, the fair value of the Superior common stock was $55 per share. The fair value of the Pawlik common stock was $25 per share.