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During 2016, Financial Holdings a public company purchased equity securities for trading purposes. At December 31 2016 the securities for Financial Holdings were as follows The following transact

During 2016, Financial Holdings, a public company, purchased equity securities for trading purposes. At December 31, 2016, the securities for Financial Holdings were as follows: The following transactions with respect to Financial Holdings investments occurred during 2017: Jan. 15 Purchased 1,500 common shares of Hazmi for $15.00 per share. The shares are designated 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 a2-for-1stocksplit. At December 31, 2017, the securities held by Financial Holdings were trading on the TSX at the following prices: Security Price Sabo common shares...........................$16.00 PYK $1.50 preferred shares....................13.75 Hazmi common shares...........................7.00 Instructions (a) Show how the securities would be reported on Financial Holdings December 31, 2016, balance sheet. (b) Record Financial Holdings 2017 transactions and any required adjusting journal entries at December 31, 2017. (c) Show how the investment income, gains, and losses would be reported on the statement of comprehensive income for the year ended December 31, 2017. (Ignore income tax) TAKING IT FURTHER Calculate the total profit/loss

Jun 16 2020 View more View Less

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