In January 2022, the management of Handley Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to be held as trading investments. During the year, the following transactions occurred.Feb. 1 Purchased 1,100 shares of NJF common shares for $48,400.Mar. 1 Purchased 500 shares of SEK common shares for $20,000.Apr. 1 Purchased 73 $1,000, 8% CRT bonds for $74,200. Interest is receivable semi-annually on April 1 and October 1.July 1 Received a cash dividend of $0.60 per share on the NJF common shares.Aug. 1 Sold 180 shares of NJF common shares at $39.00 per share.Sept. 1 Received $2 per share cash dividend on the SEK common shares.Oct. 1 Received the semi-annual interest on the CRT bonds.Oct. 1 Sold the CRT bonds for $79,240.At December 31, Handley’s fiscal year end, the fair values of the NJF and SEK common shares were $38 and $29 per share, respectively.Record the above transactions, including required adjusting journal entries (if any)

InvestmentsCompany NameNo of SharesPricePurchased @Sold @Capital Gain /LossClosing InvestmentMarket…

Answered: Record the above transactions,…

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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In January 2022, the management of Handley Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to be held as trading investments. During the year, the following transactions occurred.

Feb. 1		Purchased 1,100 shares of NJF common shares for $48,400.
Mar. 1		Purchased 500 shares of SEK common shares for $20,000.
Apr. 1		Purchased 73 $1,000, 8% CRT bonds for $74,200. Interest is receivable semi-annually on April 1 and October 1.
July 1		Received a cash dividend of $0.60 per share on the NJF common shares.
Aug. 1		Sold 180 shares of NJF common shares at $39.00 per share.
Sept. 1		Received $2 per share cash dividend on the SEK common shares.
Oct. 1		Received the semi-annual interest on the CRT bonds.
Oct. 1		Sold the CRT bonds for $79,240.