Media, Inc., began 2013 with $100,000 in both cash and common stock. The company engaged in the following investment transactions during 2013:
1. Purchased $40,000 of marketable investment securities.
2. Earned $1,200 cash from investment revenue.
3. Sold investment securities for $28,000 that cost $20,000.
4. Purchased $15,000 of additional marketable investment securities.
5. Determined that the investment securities had a fair value of $41,000 at the end of 2013.
Required:
Use a vertical statements model to prepare income statements, balance sheets, and statements of cash flow for Media, Inc., assuming the securities were (a) held to maturity, (b) trading, and (c) available for sale.