Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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A 111.
Transcribed Image Text:During 2021, Handley Financial Corporation had the following trading investment transactions:
Feb. 1 Purchased 660 CBF common shares for $41,580.
Mar. 1
Purchased 830 RSD common shares for $27,390.
Purchased 7% MRT bonds at face value, for $58,200. Handley received interest from these bonds semi-annually on
April 1 and October 1.
Received a cash dividend of $3 per share on the CBF common shares.
Sold 190 CBF common shares at $61 per share.
Received the semi-annual interest on the MRT bonds.
Sold the MRT bonds for $60,400.
RSD declared a dividend of $1.60 per share, payable on January 15 next year.
Dec. 31 The market prices of the CBF and RSD common shares were $58 and $34 per share, respectively.
Apr. 1
July
1
Aug 1
Oct. 1
1
Dec. 30
Determine the balance in each of the statement of income accounts that is affected in the transactions above and indicate how
the accounts would be presented on the statement of income for the year ended December 31, 2021. (Round answers to O
decimal places, e.g. 5,250. Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g.
(2,945).)
Other Income and Expenses
Dividend Income
Interest Income
Realized Gain on Trading Investments
Realized Loss on Trading Investments
Unrealized Loss on Trading Investments
Dividend Income
Interest Income
Realized Gain on Trading Investments
Realized Loss on Trading Investments
Unrealized Loss on Trading Investments
HANDLEY FINANCIAL CORPORATION
Statement of Income (Partial)
For the Year Ended December 31, 2021
0000
1328
GOOD DO
1328
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