The following transactions were made by Waite Company. Assume all investments are short-term and are readily marketable.
Jan. 1 Purchased 40, 8%, $1,000 Cotter Company bonds for $40,000 cash plus brokerage fees of $800. Interest is payable semiannually on July 1 and January 1.
June 2 Purchased 300 shares of Beauty Corporation common stock for $45 per share.
July 1 Received semiannual interest on Cotter Company bonds.
30 Received a cash dividend of $2 per share from Beauty Corporation.
Sept. 15 Sold 90 shares of Beauty Corporation stock for $50 per share.
Oct. 1 Sold 30 Cotter Company bonds for $32,000 plus accrued interest less $500 brokerage fees.
Dec. 31 The interest earned since July 1.
Instructions
Prepare the journal entries to record the above transactions.