The following transactions pertain to Harrison Imports for Year 1: 1. Started business by acquiring $30,000 cash from the issue of common stock. 2. Provided $90,000 of services for cash. 3. Invested $35,000 in marketable investment securities. 4. Paid $18,000 of operating expense. 5. Received $500 of investment income from the securities. 6. Invested an additional $16,000 in marketable investment securities. 7. Paid a $2,000 cash dividend to the stockholders. 8. Sold investment securities that cost $8,000 for $14,000. 9. Received another $1,000 in investment income. 10. Determined the market value of the investment securities at the end of the year was $42,000. Required Use a vertical statements model to prepare a Year 1 income statement, balance sheet, and statement of cash flows, assuming that the marketable investment securities were classified as (a) held to maturity, (b) trading, and (c) available for sale. Record the events in T- accounts prior to preparing the financial statements. Required Use a vertical statements model to prepare a Year 1 income statement, balance sheet, and statement of cash flows, assuming that the marketable investment securities were classified as (a) held to maturity, (b) trading, and (c) available for sale. Record the events in T- accounts prior to preparing the financial statements. Held to Maturity Available for Trading Sale Vertical Statements Record the events in T-accounts prior to preparing the financial statements. Assume that the marketable investment securities were classified as trading. Beginning Balance Ending Balance Cash Investment Securities Beginning Balance Ending Balance Common Stock Dividends Beginning Balance Beginning Balance Ending Balance Ending Balance Accumulated Other Comprehensive Income Unrealized Gain/Loss Service Revenue Beginning Balance Beginning Balance Ending Balance Ending Balance Investment Income Gain on Sale of Investment Beginning Balance Beginning Balance Ending Balance Ending Balance (Income Statement Account) Operating Expenses Unrealized Gain/Loss Beginning Balance Beginning Balance Ending Balance Ending Balance