Reference no: EM133116519

Question -

1. On February 15, paid $130,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 8% interest (classified as held-to-maturity).

2. On March 22, bought 700 shares of Fran Incorporated common stock at $39 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran.

3. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a.

4. On July 30, paid $39,000 cash to purchase MP Incorporated's 7% , six-month notes at par, dated July 30 (classified as trading securities).

5. On September 1, received a $0.62 per share cash dividend on the Fran Incorporated common stock purchased in part b.

6. On October 8, sold 350 shares of Fran Incorporated common stock for $45 cash per share.

7. On October 30, received a check from MP Incorporated for three months' interest on the notes purchased in part d.

Required - Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corporation, all of which occurred during the current year.