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At the end of 2018, Hodge Company prepared the following schedule of investments in trading debt securities (all of which were acquired at par value):

Company	12/31/2018 Book Value	12/31/2018 Fair Value
Thompson Company	$75,000	$74,200
Stevens Company	40,000	43,100
Totals	$115,000	$117,300

During 2019, the following transactions occurred:

July 1	Purchased Little Company debt securities for $100,000 (which is equal to par value). The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest seminannually on July 1 and December 31.
Oct. 11	Sold all of the Thompson Company securities for $73,000 plus interest of $2,800.
Dec. 31	Received interest of $5,000 on the Stevens Company and Little Company debt securities, and the following yearend total market values were available: Stevens Company debt securities, $45,000; Little Company debt securities, $98,000.

Required:

1.	Prepare journal entries to record the preceding information.

GENERAL JOURNAL Score: 99/125 POST. REF. DEBIT CREDIT DATE Jul. 1 ACCOUNT TITLE Investment in Trading Securities 1 100,000.00 2 Cash 100,000.00 3 Oct. 11 Cash 75,800.00 4 1,200.00 Loss on Sale of Trading Securities Investment in Trading Securities 5 74,200.00 6 Interest Income 2,800.00 7 Dec. 31 Cash 5,000.00 8 Interest Income 5,000.00 9 9 10

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