The following transactions pertain to Harrison Imports for Year 1:1.

The following transactions pertain to Harrison Imports for Year 1:
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 Year 1 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.

A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...


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