During 2008, Buzz Company purchased 4,000 shares of Honey Company common stock for $12 per share and 2,500 shares of Pollen Company common stock for $27 per share. These investments are intended to be held as ready sources of cash and are classified as trading securities.
Also in 2008, Buzz purchased 4,500 shares of Flower Company common stock for $25 per share and $50,000 of treasury notes at 102. These securities are classified as available for sale.
During 2008, Buzz received the following interest and dividend payments on its investments:
Honey Company ....... $2 per share dividend
Pollen Company ....... $1 per share dividend
Flower Company ......... $3 per share dividend
Treasury notes . 5% annual interest earned for 6 months
Market values of the securities at December 31, 2008, were as follows:
Honey Company ..... $16 per share
Pollen Company ..... $18 per share
Flower Company .... $23 per share
Treasury notes ......... 103
On March 23, 2009, the 2,500 shares of Pollen common stock were sold for $18 per share.
On June 30, 2009, the treasury notes were sold at 101 plus accrued interest.
Market values of remaining securities at December 31, 2009, were as follows:
Honey Company .... $15 per share
Flower Company .... $29 per share

Instructions:
1. Prepare all 2008 and 2009 journal entries related to these securities.
2. Describe how the following items would be treated on Buzz Company’s statement of cash flows for the year ended December 31, 2009. Buzz uses the indirect method of reporting cash flows from operating activities.
(a) Proceeds from the sale of Pollen shares and any realized gain or loss from the sale.
(b) Proceeds from the sale of the treasury securities and any realized gain or loss from the sale.
(c) Any unrealized gain or loss on the remaining securities.