In January 2022, the management of Sandhill Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred.
Feb. 1 Purchased 400 shares of Muninger common stock for $22,000.
Mar. 1 Purchased 600 shares of Tatman common stock for $15,000.
Apr. 1 Purchased 50 of $1,070, 8% Yoakem bonds for $53,500. Interest is payable semiannually on April 1 and October 1.
July 1 Received a cash dividend of $0.60 per share on the Muninger common stock.
Aug. 1 Sold 133 shares of Muninger common stock at $60 per share.
Sept. 1 Received a $1 per share cash dividend on the Tatman common stock.
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Oct. 1 Sold the Yoakem bonds for $51,200.
At December 31, the fair value of the Muninger and Tatman common stocks were $56 and $24 per share respectively. These stock investments by Sandhill Company provide less than a 20% ownership interest.