Question: The following transactions pertain to Harrison Imports for 2016 1 Started

The following transactions pertain to Harrison Imports for 2016:
1. Started business by acquiring $30,000 cash from the issue of common stock.
2. Provided $90,000 of services for cash.
3. Invested $35,000 in marketable investment securities.
4. Paid $18,000 of operating expense.
5. Received $500 of investment income from the securities.
6. Invested an additional $16,000 in marketable investment securities.
7. Paid a $2,000 cash dividend to the stockholders.
8. Sold investment securities that cost $8,000 for $14,000.
9. Received another $1,000 in investment income.
10. Determined the market value of the investment securities at the end of the year was $42,000.
Use a vertical statements model to prepare a 2016 income statement, balance sheet, and statement of cash flows, assuming that the marketable investment securities were classified as
(a) Held to maturity,
(b) Trading, and
(c) Available for sale.

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  • CreatedApril 20, 2015
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