Use the financial statement effects template to record the following four transactions involving investments in marketable securities classified as trading. Please explain answers.

1. Purchased 12,000 common shares of Liu, Inc., at $12 cash per share.

2. Received a cash dividend of $1.10 per common share from Liu.

3. Year-end market price of Liu common stock is $11.25 per share.

4. Sold all 12,000 common shares of Liu for $133,800.

Using the same transaction information as above, complete the financial statement assuming the investments in marketable securities are classified as available-for-sale.

Answer rating: 100% (QA)

Marketable securities Balance Sheet Transaction Cash Asset Noncash As... View the full answer