Recording Securities Transactions
The following transactions of Knight, Inc., occurred within the same accounting period:
(a) Purchased $105,000 U.S. Treasury 7% bonds, paying 103 plus accrued interest of $1,200. In addition, Knight paid brokerage fees of $470. Knight uses the revenue approach to record accrued interest on purchased bonds. Knight classified this security as a trading security.
(b) Purchased 1,700 shares of Sand Co. common stock at $85 per share plus brokerage fees of $1,750. Knight classifies this stock as an available for sale security.
(c) Received semiannual interest on the U.S. Treasury bonds.
(d) Sold 250 shares of Sand at $97 per share.
(e) Sold $30,000 of U.S. Treasury 7% bonds at 102 plus accrued interest of $350.
(f) Purchased a $20,000, 6 month certificate of deposit. The certificate is classified as a trading security.
Prepare the entries necessary to record these transactions.