Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the crites for Financial votings were POSAO AP During Financial ities for trading purpose. Ar December Security She common shares PYKSI. SO preferred shares Total

image text in transcribed
image text in transcribed
image text in transcribed
the crites for Financial votings were POSAO AP During Financial ities for trading purpose. Ar December Security She common shares PYKSI. SO preferred shares Total Quantity 1.000 2.000 $15.000 24.000 $39.000 Market Value $13,500 24,500 $38.000 The following transactions with respect to Financial Holdings investments occurred during 2021: Jan. 15 Purchased 1.500 common shares of Hazio for $15.00 per share. The shares are desig nated as fair value through other comprehensive income. Mar. 20 Received dividends on the PYK preferred shares of $1.50 per share. June 15 Sold 750 of the Sabo common shares for $15.75 per share, Aug. 5 Received dividends on the Sabo common shares of $2.50 per share. Oct. 15 Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split. At December 31, 2021, the securities held by Financial Holdings were trading on the TSX at owing prices: Security Price Sabo common shares $16.00 PYK $1.50 preferred shares 13.75 Hazmi common shares 7.00 following prices: Security Sabo common shares PYK $1.50 preferred shares Hazmi common shares Price $16.00 13.75 7.00 Instructions sheet ber 31, 2021. c. Show how the investment income, gains, and losses would be reported on the statement of compre- hensive income for the year ended December 31, 2021. (Ignore income tax.) Taking It Further Calculate the total profit/loss (over the life of the investment) that Financial Holdings made on the 750 Sabo common shares sold on June 15, 2021, and calculate the percentage return on the investment. 2. Show how the securities would be reported on Financial Holdings' December 31, 2020, balance b. Record Financial Holdings' 2021 transactions and any required adjusting journal entries at Decem- P16.5A (LO 3, 5) AP During 2020, Financial Holdings, a public company, purchased equity rities for trading purposes. At December 31, 2020, 166. sepublic ofereial Holdings were as follows: 000 Cost Market Value $13,500 24,500 $38.000 Security Quantity Sabo common shares 1,000 $15,000 PYK $1.50 preferred shares 2,000 24,000 Total $39,000 The following transactions with respect to Financial Holdings' investments occurred during 2021: Jan. 15 Purchased 1,500 common shares of Hazmi for $15.00 per share. The shares are desig- nated as fair value through other comprehensive income. Mar. 20 Received dividends on the PYK preferred shares of $1.50 per share. June 15 Sold 750 of the Sabo common shares for $15.75 per share. Aug. 5 Received dividends on the Sabo common shares of $2.50 per share. Oct. 15 Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split. At December 31, 2021, the securities held by Financial Holdings were trading on the TSX at the following prices

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor Study Guide

Authors: David L. Cannon, Timothy S. Bergmann, Brady Pamplin

1st Edition

0782144381, 978-0782144383

More Books

Students also viewed these Accounting questions