Question: The following transactions pertain to Glass Imports for 2013 1

The following transactions pertain to Glass Imports for 2013:
1. Started business by acquiring $50,000 cash from the issue of common stock.
2. Provided $180,000 of services for cash.
3. Invested $70,000 in marketable investment securities.
4. Paid $36,000 of operating expense.
5. Received $1,000 of investment income from the securities.
6. Invested an additional $30,000 in marketable investment securities.
7. Paid a $3,000 cash dividend to the stockholders.
8. Sold investment securities that cost $16,000 for $25,000.
9. Received another $2,000 in investment income.
10. Determined the market value of the investment securities at the end of the year was $81,000.

Use a vertical model to prepare a 2013 income statement, balance sheet, and statement of cash flows, assuming that the marketable investment securities were classified as
(a) Held to maturity,
(b) Trading,
(c) Available for sale.

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  • CreatedOctober 12, 2013
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