Solution-Record the four events in a statements model

Record the four events in a statements model

Reference no: EM13918453

The following information pertains to Arnold Supply Co. for 2013:

1. Purchased $200,000 of marketable investment securities.
2. Earned $20,000 of cash investment revenue.
3. Sold for $60,000 securities that cost $50,000.
4. The fair value of the remaining securities at December 31, 2013, was $180,000.

Required:

a. Record the four events in a statements model like the following one. Use a separate model for each classification: (1) held to maturity, (2) trading, and (3) available for sale. The first event for the first classification is shown as an example.

406_264-B-A-I (3777).png

b. What is the amount of net income under each of the three classifications?
c. What is the change in cash from operating activities under each of the three classifications?
d. Are the answers to Requirements b and c different for each of the classifications? Why or why not?

Reference no: EM13918453

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Record the four events in a statements model

Reference no: EM13918453

Reference no: EM13918453

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