02 Feb Investments in Bonds and StockVermont Corp. enters
Investments in Bonds and StockVermont Corp. enters into the following transactions during 2008:July 1: Paid $10,000 to acquire on the open market $10,000 face value of Maine bonds. Thebonds have a stated annual interest rate of 8% with interest paid semiannually on June30 and December 31. The remaining life of the bonds on the date of purchase is 31/2years.Oct. 23: Purchased 1,000 shares of Virginia common stock at $15 per share.Nov. 21: Purchased 600 shares of Carolina preferred stock at $8 per share.Dec. 10: Received dividends of $0.50 per share on the Virginia stock and $1.00 per share on theCarolina stock.Dec. 28: Sold 700 shares of Virginia common stock at $19 per share.Dec. 31: Received interest from the Maine bonds.RequiredPrepare all necessary journal entries on Vermont’s records to account for its investments during2008.