Tugas

In January 2017, the management of Stefan Company SE concludes that it has sufficient cash to
permit some short term investment in debt and share securities. During the year, the following
transactions occurred.

Feb 1 purchased 600 ordinary shares of Superior for $32.400

Mar 1 purchased 800 ordinary shares of Pawlik for $20.400

April 1 purchased 50 $1.000, 7% venice bond for $50.000. interest is payable annually

on October 1.

July 1 received cash dividend of $0,60 per share on the Superior ordinary shares.

Aug 1 sold 200 ordinary shares of Superior at $57 per share.

Sept 1 received a $1 per share cash dividend on the Pawlik ordinary shares.

Oct 1 received the interest on the venice bond.

Oct 1 sold the Venice bond for $49.000.

At the December 31, fair value of the Superior ordinary shares was $55 per shares. The fair value
of the Pawlik ordinary shares was $24 per share.

Instructions:

a. Journalize the transactions and post to the account debt investment and share investment.

b. Prepare the adjusting entries at December 31, 2017, to report the investment securities at fair
value. All securities are considered to be trading securities.