Exercise $15-13$ Transactions in held$-$to$-$maturity, trading, and stock investments P

Prepare journal entries to record the following transactions involving both the short$-$term and long$-$term investments of Cancun Corp., all

of which occurred during the current year.

a$.$ On February $15,$ paid $$160,000$ cash to purchase GMI's $90-$day short$-$term notes at par, which are dated February $15$ and pay $10\%$

interest $($classified as held$-$to$-$maturity$).$

b$.$ On March $22,$ bought $700$ shares of Fran Inc. common stock at $$51$ cash per share. Cancun's stock investment results in it having an

insignificant influence over Fran.

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

d$.$ On July $30,$ paid $$100,000$ cash to purchase MP Inc.$\text{'}$s $8\%,$ six$-$month notes at par, dated July $30($classified as trading securities$).$

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

f$.$ On October $8,$ sold $30$ shares of Fran Inc. common stock for $$54$ cash per share.

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