The following transactions pertain to Harrison Imports for 2016: 1. Started business by acquiring $30,000 cash from

Question:

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

Dividend
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...