AC Purpose: VESTMENTS Reinforce understanding of amounts reported for short-term investments. BALANCE SHEET ACCOUNTS-December 31, Year 1 Cash Short-term investments-Trading securities Interest receivable Total current assets $ 30,000 200,000 1,000 $231,000 INCOME STATEMENT ACCOUNTS-Year 1 Interest revenue Dividend revenue Unrealized loss on trading securities 4,000 5,000 12,000 Refer to the information presented above to answer the following questions. Assume this is the first year of operation. 01 Investments classified as short term are intended to be sold or liquidated in (one year or less/ more than one year). Q2 Trading securities are reported on the balance sheet at their (acquisition cost/market value). The Q3 Q4 50 96 Q6 During this accounting fair market value of the trading securities reported above is $ period the market value of these trading securities has (increased / decreased / can't tell) by Because this is the first year of operation, these securities must have been originally purchased for $ If these securities were sold next year, a(n) (realized / unrealized) loss would be reported if the selling price was less than the (acquisition cost / market value at the end of last year / current market value). The amount of interest earned during this accounting period was $ was collected in cash during this accounting period and $_ of cash to be received in the future. Of this amount, is the amount The income statement accounts listed above would be reported on a multi-step income statemen as (operating/nonoperating) revenues and expenses, indicating these are revenues and expense from (operating/investing/financing). (Circle all that apply.) As a result of the financial statement information listed above, Year 1 net income will (increase decrease) by $