Assessing Financial Statement Effects of Trading and Available-for-Sale Securities (a) Use the financial statement effects template to record the following four transactions involving investments in marketable securities classified as trading.

Purchased 6,000 common shares of Liu, Inc., at $12 cash per share.

Received a cash dividend of $1.10 per common share from Liu.

Year-end market price of Liu common stock is $11.25 per share.

Sold all 6,000 common shares of Liu for $66,900.

(b) Using the same transaction information as above, complete the financial statement effects template assuming the investments in marketable securities are classified as available-for-sale.

Balance Sheet Noncash Transaction Cash Asset Liabilities Assets (1) (2) (3) (4) Income Statement Expenses Net Income Revenue Contributed Capita Earned Capita