The SMF Company purchased 900 Company K bonds on December 1, 20X5, for $1,000 per bond. When it purchased these bonds, SMF did not intend to sell them in the shortterm in order to raise cash or to hold onto them until maturity. It purchased 1,000 shares of Company O's stock at $70 per share on December 3, 20X5. Company O has issued 10,000,000 shares of stock. It sold 400 shares of Company O stock on December 16, 20X5, for $72 per share. On December 29, 20X5, Company O paid SMF $100 in dividends and Company K paid SMF $85 in interest. At the end of December, Company O's stock was selling for $73 per share and Company K's bonds were selling for $1,010 per bond. 

How would these transactions be reflected on SMF's financial statements issued as of December 31, 20X5?

Answer rating: 100% (QA)

Answer These transactions would be reflected on SMFs financial statements as follows 1 Purchase of C... View the full answer