O’Brien Industries Inc. is a book publisher. Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, Year 1, are as follows: No. of Shares Cost per Share Total Cost Total Fair Value Bernard Co. stock 2,600 $14 $36,400 $33,100 Chadwick Co. stock 900 41 36,900 34,500 $73,300 $67,600 Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 32% of the outstanding shares of Jolly Roger Co. The following selected investment transactions occurred during Year 2: May 5. Purchased 3,000 shares of Gozar Inc. at $26 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security. Oct. 1. Purchased $42,000 of Nightline Co. 5%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1. Oct. 9. Dividends of $12,200 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for Year 2. O’Brien Industries Inc. recorded equity earnings for its share of Jolly Roger Co. net income. 31. Accrued three months of interest on the Nightline bonds. 31. Adjusted the available-for-sale investment portfolio to fair value, using the following fair value per-share amounts: Available-for-Sale Investments Fair Value Bernard Co. stock $13 per share Chadwick Co. stock $36 per share Gozar Inc. stock $27 per share Nightline Co. bonds $98 per $100 of face amount Dec. 31. Closed the O’Brien Industries Inc. net income of $155,500. O’Brien Industries Inc. paid no dividends during the year. Required: The comparative unclassified balance sheets for December 31, Year 2 and Year 1 are provided below. Determine the missing amounts in the unclassified balance sheet. Do not round interim calculations. Round final answers to nearest dollar. Use minus sign to indicate the negative amounts. O’Brien Industries Inc. Balance Sheet December 31, Year 2 and Year 1 Dec. 31, Year 2 Dec. 31, Year 1 Cash $232,535 $217,700 Accounts Receivable (Net) 150,700 139,500 Available-for-Sale Investments (at Cost) - Note 1 fill in the blank 1 73,300 Less Valuation Allowance for Available-for-Sale Investments fill in the blank 2 5,700 Available-for-Sale Investments (Fair Value) $fill in the blank 3 $67,600 Interest Receivable $fill in the blank 4 Investment in Jolly Roger Co. Stock - Note 2 fill in the blank 5 $ 76,100 Office Equipment (Net) 126,500 133,200 Total Assets $fill in the blank 6 $634,100 Accounts Payable $ 80,900 $ 72,900 Common Stock 69,800 69,800 Excess of Issue Price Over Par 221,900 221,900 Retained Earnings fill in the blank 7 275,200 Unrealized Gain (Loss) on Available-for-Sale Investments fill in the blank 8 (5,700) Total Liabilities and Stockholders' Equity $fill in the blank 9 $634,10

O’Brien Industries Inc. is a book publisher. Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, Year 1, are as follows: No. of Shares Cost per Share Total Cost Total Fair Value Bernard Co. stock 2,600 $14 $36,400 $33,100 Chadwick Co. stock 900 41 36,900 34,500 $73,300 $67,600 Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 32% of the outstanding shares of Jolly Roger Co. The following selected investment transactions occurred during Year 2: May 5. Purchased 3,000 shares of Gozar Inc. at $26 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security. Oct. 1. Purchased $42,000 of Nightline Co. 5%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1. Oct. 9. Dividends of $12,200 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for Year 2. O’Brien Industries Inc. recorded equity earnings for its share of Jolly Roger Co. net income. 31. Accrued three months of interest on the Nightline bonds. 31. Adjusted the available-for-sale investment portfolio to fair value, using the following fair value per-share amounts: Available-for-Sale Investments Fair Value Bernard Co. stock $13 per share Chadwick Co. stock $36 per share Gozar Inc. stock $27 per share Nightline Co. bonds $98 per $100 of face amount Dec. 31. Closed the O’Brien Industries Inc. net income of $155,500. O’Brien Industries Inc. paid no dividends during the year. Required: The comparative unclassified balance sheets for December 31, Year 2 and Year 1 are provided below. Determine the missing amounts in the unclassified balance sheet. Do not round interim calculations. Round final answers to nearest dollar. Use minus sign to indicate the negative amounts. O’Brien Industries Inc. Balance Sheet December 31, Year 2 and Year 1 Dec. 31, Year 2 Dec. 31, Year 1 Cash $232,535 $217,700 Accounts Receivable (Net) 150,700 139,500 Available-for-Sale Investments (at Cost) - Note 1 fill in the blank 1 73,300 Less Valuation Allowance for Available-for-Sale Investments fill in the blank 2 5,700 Available-for-Sale Investments (Fair Value) $fill in the blank 3 $67,600 Interest Receivable $fill in the blank 4 Investment in Jolly Roger Co. Stock - Note 2 fill in the blank 5 $ 76,100 Office Equipment (Net) 126,500 133,200 Total Assets $fill in the blank 6 $634,100 Accounts Payable $ 80,900 $ 72,900 Common Stock 69,800 69,800 Excess of Issue Price Over Par 221,900 221,900 Retained Earnings fill in the blank 7 275,200 Unrealized Gain (Loss) on Available-for-Sale Investments fill in the blank 8 (5,700) Total Liabilities and Stockholders' Equity $fill in the blank 9 $634,10

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 4PA: OBrien Industries Inc. is a book publisher. The comparative unclassified balance sheets for December...

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O’Brien Industries Inc. is a book publisher.

Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, Year 1, are as follows:

	No. of Shares	Cost per Share	Total Cost	Total Fair Value
Bernard Co. stock	2,600		$14		$36,400	$33,100
Chadwick Co. stock	900		41		36,900	34,500
					$73,300	$67,600

Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 32% of the outstanding shares of Jolly Roger Co.

The following selected investment transactions occurred during Year 2:


May 5.	Purchased 3,000 shares of Gozar Inc. at $26 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security.
Oct. 1.	Purchased $42,000 of Nightline Co. 5%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1.
Oct. 9.	Dividends of $12,200 are received on the Jolly Roger Co. investment.
Dec. 31.	Jolly Roger Co. reported a total net income of $112,000 for Year 2. O’Brien Industries Inc. recorded equity earnings for its share of Jolly Roger Co. net income.
31.	Accrued three months of interest on the Nightline bonds.
31.	Adjusted the available-for-sale investment portfolio to fair value, using the following fair value per-share amounts:

Available-for-Sale Investments	Fair Value
Bernard Co. stock	$13 per share
Chadwick Co. stock	$36 per share
Gozar Inc. stock	$27 per share
Nightline Co. bonds	$98 per $100 of face amount

Dec. 31.

Closed the O’Brien Industries Inc. net income of $155,500. O’Brien Industries Inc. paid no dividends during the year.

Required:

The comparative unclassified balance sheets for December 31, Year 2 and Year 1 are provided below. Determine the missing amounts in the unclassified balance sheet. Do not round interim calculations. Round final answers to nearest dollar. Use minus sign to indicate the negative amounts.

O’Brien Industries Inc.
Balance Sheet
December 31, Year 2 and Year 1
	Dec. 31, Year 2	Dec. 31, Year 1
Cash	$232,535	$217,700
Accounts Receivable (Net)	150,700	139,500
Available-for-Sale Investments (at Cost) - Note 1	fill in the blank 1	73,300
Less Valuation Allowance for Available-for-Sale Investments	fill in the blank 2	5,700
Available-for-Sale Investments (Fair Value)	$fill in the blank 3	$67,600
Interest Receivable	$fill in the blank 4
Investment in Jolly Roger Co. Stock - Note 2	fill in the blank 5	$ 76,100
Office Equipment (Net)	126,500	133,200
Total Assets	$fill in the blank 6	$634,100
Accounts Payable	$ 80,900	$ 72,900
Common Stock	69,800	69,800
Excess of Issue Price Over Par	221,900	221,900
Retained Earnings	fill in the blank 7	275,200
Unrealized Gain (Loss) on Available-for-Sale Investments	fill in the blank 8	(5,700)
Total Liabilities and Stockholders' Equity	$fill in the blank 9	$634,10

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