7. Hadley Company hasthe following securities in its portfolio on December 31, 2020: ...7....

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Accounting

7.         Hadley Company hasthe following securities in its portfolio on December 31, 2020:
                                                                        Cost           Fair Value
15,000 shares of Brady Corp.Common        $450,000        $460,000
100 shares of Sanders, Inc.Common            115,000            90,000
2,000 shares of Peters, Inc. Preferred           210,000         195,000
                                                                      $775,000        $745,000
All of the securities were purchased in 2020. In 2021, Hadleycompleted the following
securities transactions:
March1           Sold5,000 shares of Brady, Corp. Common for $170,000
August 1         Bought 1,000 shares of North Stores, Common @ $40 each plus fees of$1,000.
The Hadley Company portfolio of securities appeared as followson December 31, 2021:
                                                                         Cost           Fair Value
10,000 shares of Brady Corp.,Common       $300,000        $280,000
100 Sanders ConvertibleBonds                    115,000         102,000
1.000 shares North StoresCommon                 41,000            42,000
2,000 shares of Peters, Inc. Preferred           210,000         220,000
                                                                      $666,000        $644,000
On the form provided prepare the general journal entries forHadley Company for:
(a)        the 2020 adjustingentry.
(b)        the sale of theBrady stock.
(c)        the purchase ofthe North Stores' stock.
(d)       the 2021 adjustingentry. (10 points)

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a Adjusting entries of 2020 Date Particulars Debit Credit 31122020 Investment in common shares of Brady Corp 10000 To Unrealized holiding gain OCI 10000 31122020 Unrealized holiding loss OCI 25000 To Investment in common shares of Sanders Inc See Answer

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In: Accounting7. Hadley Company hasthe following securities in its portfolio on December 31, 2020: ...7. Hadley Company hasthe following securities in its portfolio on December 31, 2020: Cost Fair Value15,000 shares of Brady Corp.Common $450,000 $460,000100 shares of Sanders, Inc.Common 115,000 90,0002,000 shares of Peters, Inc. Preferred 210,000 195,000 $775,000 $745,000All of the securities were purchased in 2020. In 2021, Hadleycompleted the followingsecurities transactions:March1 Sold5,000 shares of Brady, Corp. Common for $170,000August 1 Bought 1,000 shares of North Stores, Common @ $40 each plus fees of$1,000.The Hadley Company portfolio of securities appeared as followson December 31, 2021: Cost Fair Value10,000 shares of Brady Corp.,Common $300,000 $280,000100 Sanders ConvertibleBonds 115,000 102,0001.000 shares North StoresCommon 41,000 42,0002,000 shares of Peters, Inc. Preferred 210,000 220,000 $666,000 $644,000On the form provided prepare the general journal entries forHadley Company for:(a) the 2020 adjustingentry.(b) the sale of theBrady stock.(c) the purchase ofthe North Stores' stock.(d) the 2021 adjustingentry. (10 points)