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Determined the market value of the investment securities

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Reference no: EM13918418

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.

Required:

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.

Reference no: EM13918418

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