Julie Company came into existence with a $2,000 cash investment by owners on January 1, 2011, and

Question:

Julie Company came into existence with a $2,000 cash investment by owners on January 1, 2011, and entered into the following transactions during 2011:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,200
Cash expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,700)
Purchase of building on January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550
Purchase of trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
Sale of trading securities (cost, $200) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
Purchase of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
Sale of available-for-sale securities (cost, $100) . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
The following additional information is available:
Balance in on December 31 . . . . . . . . . . . . . . . . . . . . . . . . . $190
Depreciation expense recognized for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Fair value of remaining trading securities on December 31 . . . . . . . . . . . . . . . . . 210
Fair value of remaining available-for-sale securities on December 31 . .. . . . . . . . 270
Instructions:
1. Prepare an income statement for 2011.
2. Prepare a complete statement of cash flows for 2011. Use the indirect method of reporting cash from operating activities. In all cases, assume that trading securities were acquired for operating purposes.
3. Prepare a as of December 31, 2011.

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