A. Show the balance sheet classification for the following items:

Unrealized holding gains/losses from marking trading securities to fair value

Accumulated unrealized holding gains/losses from marking AFS debt securities to fair value

Billing in excess of CIP (or cost and profit)

B. Label each transaction as cash flows from operating, investing, or financing activities using US GAAP.

Issuance of common stock $480,000

Cash received from customers 340,000

Interest on note receivable 1,500

Sale of equipment at book value 90,000

Collection of long-term note receivable (the principal) 77,000

Issuance of a long-term note in exchange for a building with a fair value of $100,000

Cash Dividends paid 55,000

Purchase of land 90,000

Operating expenses 200,000

Interest expense on bonds payable 30,000

Retirement of bonds payable 310,000

Purchase if merchandise 55,000

Payment of employee salaries

C. Prepare journal entries for the following transactions and show its effect on the balance sheet.

Purchased welding equipment by paying $3,000 cash, and signing a $9,000, 24-month,

Sold an inventory costing $200 on account for $300. The company adopts the perpetual inventory system.

Received $3000 from a tenant on December 1 to cover rents for the next three months. The company decided to record it as rent revenue.