The following information and financial statements excerpts pertain to Liquidity Inc. a. All short term investments (securities available for sale) were purchased on 12/31/08 and sold during 2009. b. The company entered a lease agreement on 12/31/09, which accounts for the $50 increase of Fixed assets under capital lease (net). There is no cash impact of this transaction (the journal entry is Dr. Capital lease 50 and Cr. Obligation under capital leases 50). c. Fixed assets with a net book value of $15 were sold for cash during the year. d. The company repaid the current portion of long-term debt during the year.

e. All the new long-term debt taken in 2009 was for cash. f. Cash dividend was declared and partially paid.

g. The company issued common stocks for cash in 2009 and did not buy back any common stocks.

		2009
Revenues, net			426
Cost of goods sold			310
Gross margin			116
General expenses		30
Wakes expenses		42
Depreciation expenses		24
Interest expenses		11
Loss on sale of fixed assets		3
Gain on sale of securities available for sale		-12
Tax expenses		8
			106
Net income			10

Requirements: Provide journal entries for the following transactions. Prepare the statement of cash flows for the year 2009 using the indirect method.

Journal entries:

1. All short term investments (securities available for sale) were purchased on 12/31/08 and sold during 2009. Provide the journal entry for the sale of short term investments.