35. Which of the following will deduct the company's unadjusted book balance of cash in a bank reconciliation? A. Service charges. B. Checks outstanding. C. Deposits outstanding D. Interest earned 36. Cash and Cash Equivalents do not include A. Savings account. B. Bank checking account. Checks from customers. D. U.S. government securities maturing in 2 years. 37. Which of the following statements is true about investments classified as Trading Securities? A. The investor's intent and ability is to hold them to maturity B. They are valued on the balance sheet at cost. C. They can consist of debt, but not equity securities. D. Changes in market value are reflected as part of net income. 38. Trading Securities were purchased in 2016 for $92,000. At December 31, 2016, the securities had a fair value of $90,000. The journal entry on December 31, 2016 would include a: A. Debit to the Unrealized Loss account for $2,000. B. Debit to the Investment in Trading Securities account for $2,000. C. Debit to the Unrealized Gain account for $2,000 D. Credit to the Unrealized Loss account for $2,000 39. When a company sells a trading security, the gain on the sale of trading securities is reported in: A. Other comprehensive income in the stockholders' equity section of the Balance Sheet. B. Short-term investments in the Balance Sheet. C. Operating revenues in the Income Statement. D. Other income and gains in the Income Statement. 10