Reconstructing transactions involving marketable securities. The financial state- ments of Zeff Corporation reveal the following information with respect to securities available for sale:

During Year 2. Zeff Corporation sold securities for $14,000 that had a book value at the time of sale of $13.000. Set up T-accounts for each of the three accounts above and enter the balances on December 31. Year 1 and Year 2. before making the closing entries for Year 2. Enter in the T-accounts the entries that Zeff Corporation made during Year 2 for the following:

a. Sale of marketable securities h. Revaluation of marketable securities to market value on December 31. Year 2.

c. Purchase of marketable securities during Year 2.

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December 31 Year 1 Year 2 Balance Sheet Marketable Securities at Market Value $187,000 $195,000 Net Unrealized Holding Gain on Securities Available for Sale.... 12.000 10.000 Income Statement Year 2 Realized Gain on Sale of Securities Available for Sale.. $4,000