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.
Required
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.

View Solution:


Sale on SolutionInn
Sales0
Views43
Comments
  • CreatedApril 20, 2015
  • Files Included
Post your question
5000