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During 2020, Financial Holdings, a public company purchased equity securities for trading purposes. At December 31, 2020, the securities for Financial Holdings were as follows:

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During 2020, Financial Holdings, a public company purchased equity securities for trading purposes. At December 31, 2020, the securities for Financial Holdings were as follows: Quantity Cost Market Value Security Sabo common shares PYK $1.50 preferred shares 1.000 $18,000 $16,500 2,000 30,000 30.500 Total $48,000 $47.000 The following transactions with respect to Financial Holdings'investments occurred during 2021: Jan. 15 Purchased 1,500 common shares of Hazmi for $18.00 per share. The shares are designated as fair value through other comprehensive income Received dividends on the PYK preferred shares of $1.50 per share. Sold 500 of the Sabo common shares for $18.75 per share. Mar 20 June 15 Aug 5 Received dividends on the Sabo common shares of $2.00 per share. Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split. Oct 15 At December 31, 2021, the securities held by Financial Holdings were trading on the TSX at the following prices: Price Security Sabo common shares $19.00 PYK $1.50 preferred shares 16.75 Hazmi common shares 8.50 Your answer is correct. Show how the securities would be reported on Financial Holdings December 31, 2020, balance sheet FINANCIAL HOLDINGS Balance Sheet (Partial) December 31, 2020 Current Assets Investments at Fair Value through Prohtor Loss 47,000 Record Financial Holdings 2021 transactions and any required adjusting journal entries at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem. Round answer to O decimal places, eg. 5,276) Date Account Titles and Explanation Debit Credit Jan 15 Investments at FVTOCI 27,000 Cash 27.000 (To record purchase of investment.) Mar. 20 Cash 3000 Investments at FVTPL 3000 CULT June 15 Cash > 9,375 Investments at FVTPL 9.075 OCI -- Holding Gain or Loss C 300 To record sale of investment.) Aug 5 Cash 1,000 Dividend Revenge > 1.000 (Collection of dividend) Dec 31 O y 5 Dec 31 (To record fair value adjustment.) (To record fair value adjustment.) Save for Later Attempts: 0 of 2 used Submit Answer (c)

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