Question -

1. On April 18, Dice Co. made a short-term investment in 500 common shares of XLT Co. The purchase price is $45 per share and the broker's fee is $150. The intent is to actively manage these shares for profit. On May 30, Dice Co. receives $1 per share from XLT in dividends. Prepare the April 18 and May 30 journal entries to record these transactions.

2. On February 1, 2011, Charo Mendez purchased 6% bonds issued by CR Utilities at a cost of $30,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2011, prepare entries to record Mendez's July 31 receipt of interest and its December 31 year-end interest accrual.

3. Prepare journal entries to record the following transactions involving the short-term securities investments of Maxwell Co., all of which occurred during year 2011.

a. On February 15, paid $100,000 cash to purchase FTR's 90-day short-term debt securities($100,000 principal), dated February 15, that pay 8% interest ( categorized as held-to-maturity securities)

b. On May16, received a check from FTR in payment of the principal and 90 days' interest on the debt securities purchased in transition a.