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During 2023, Financial Crane, a public company, purchased equity securities for trading purposes. At December 31, 2023, the securities for Financial Crane were as follows: Security Sabo common shares PYK $1.50 preferred shares 2,000 Total Jan. 15 Mar. 20 June 15 Aug. Oct. 15 5 The following transactions with respect to Financial Crane's investments occurred during 2024: Quantity 1,000 Security Sabo common shares PYK $1.50 preferred shares Hazmi common shares Cost Purchased 1,500 common shares of Hazmi for $16 per share. The shares are designated as fair value through ot comprehensive income. Received dividends on the PYK preferred shares of $1.50 per share. Sold 550 of the Sabo common shares for $16.75 per share. Received dividends on the Sabo common shares of $2.50 per share. Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split. Price $17.00 $16,000 At December 31, 2024, the securities held by Financial Crane were trading on the TSX at the following prices: 14.75 26,000 7.50 $42,000 Market Value $14,500 26,500 $41,000

During 2023, Financial Crane, a public company, purchased equity securities for trading purposes. At December 31, 2023, the securities for Financial Crane were as follows: Security Sabo common shares PYK $1.50 preferred shares 2,000 Total Jan. 15 Mar. 20 June 15 Aug. Oct. 15 5 The following transactions with respect to Financial Crane's investments occurred during 2024: Quantity 1,000 Security Sabo common shares PYK $1.50 preferred shares Hazmi common shares Cost Purchased 1,500 common shares of Hazmi for $16 per share. The shares are designated as fair value through ot comprehensive income. Received dividends on the PYK preferred shares of $1.50 per share. Sold 550 of the Sabo common shares for $16.75 per share. Received dividends on the Sabo common shares of $2.50 per share. Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split. Price $17.00 $16,000 At December 31, 2024, the securities held by Financial Crane were trading on the TSX at the following prices: 14.75 26,000 7.50 $42,000 Market Value $14,500 26,500 $41,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2023, Financial Crane, a public company, purchased equity securities for trading purposes. At December 31, 2023, the securities for Financial Crane were as follows: Security Sabo common shares PYK $1.50 preferred shares 2,000 Total Jan. 15 Mar. 20 June 15 Quantity 1,000 Security The following transactions with respect to Financial Crane's investments occurred during 2024: Sabo common shares PYK $1.50 preferred shares Hazmi common shares Received dividends on the PYK preferred shares of $1.50 per share. Sold 550 of the Sabo common shares for $16.75 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. Cost Purchased 1,500 common shares of Hazmi for $16 per share. The shares are designated as fair value through other comprehensive income. Price $16,000 26,000 $42,000 $17.00 Market Value At December 31, 2024, the securities held by Financial Crane were trading on the TSX at the following prices: 14.75 $14,500 7.50 26,500 $41,000
Transcribed Image Text:During 2023, Financial Crane, a public company, purchased equity securities for trading purposes. At December 31, 2023, the securities for Financial Crane were as follows: Security Sabo common shares PYK $1.50 preferred shares 2,000 Total Jan. 15 Mar. 20 June 15 Quantity 1,000 Security The following transactions with respect to Financial Crane's investments occurred during 2024: Sabo common shares PYK $1.50 preferred shares Hazmi common shares Received dividends on the PYK preferred shares of $1.50 per share. Sold 550 of the Sabo common shares for $16.75 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. Cost Purchased 1,500 common shares of Hazmi for $16 per share. The shares are designated as fair value through other comprehensive income. Price $16,000 26,000 $42,000 $17.00 Market Value At December 31, 2024, the securities held by Financial Crane were trading on the TSX at the following prices: 14.75 $14,500 7.50 26,500 $41,000
Your answer is correct. Show how the securities would be reported on Financial Crane's December 31, 2023, balance sheet. Current Assets Investments at Fair Value through Profit or Loss Show Transcribed Text Date Jan, 15 Mar. 20 June 15 Record Financial Crane's 2024 transactions and any required adjusting journal entries at December 31, 2024. (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 O for the amounts. Record journal entries in the order presented in the problem. Round answer to 0 decimal places, e.g. 5,276. List all debit entries before credit entries.) Aug. 5 Oct. 15 Dec. 31 December 31, 2023 Dec. 31 v Account Titles and Explanation Investments at FVTOCI Cash FINANCIAL CRANE Balance Sheet (Partial) Cash Investment Income or Loss Cash Investment Income or Loss Investments at FVTPL Cash Investment Income or Loss No Entry No Entry Investments at FVTPL Investment Income or Loss 3 $ OCI-Holding Gain or Loss (To record fair value adjustment for Sabo and PYK.) Investments at FVTOCI 41000 (To record fair value adjustment for Hazmi.) Debit 24000 3000 9213 1375 Credit 24000 3000 1238 7975 1375
Transcribed Image Text:Your answer is correct. Show how the securities would be reported on Financial Crane's December 31, 2023, balance sheet. Current Assets Investments at Fair Value through Profit or Loss Show Transcribed Text Date Jan, 15 Mar. 20 June 15 Record Financial Crane's 2024 transactions and any required adjusting journal entries at December 31, 2024. (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 O for the amounts. Record journal entries in the order presented in the problem. Round answer to 0 decimal places, e.g. 5,276. List all debit entries before credit entries.) Aug. 5 Oct. 15 Dec. 31 December 31, 2023 Dec. 31 v Account Titles and Explanation Investments at FVTOCI Cash FINANCIAL CRANE Balance Sheet (Partial) Cash Investment Income or Loss Cash Investment Income or Loss Investments at FVTPL Cash Investment Income or Loss No Entry No Entry Investments at FVTPL Investment Income or Loss 3 $ OCI-Holding Gain or Loss (To record fair value adjustment for Sabo and PYK.) Investments at FVTOCI 41000 (To record fair value adjustment for Hazmi.) Debit 24000 3000 9213 1375 Credit 24000 3000 1238 7975 1375
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