O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows: The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows: The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co.The following selected transactions occurred during 20Y5:Jan.2.Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31.June30.Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.Oct.1.Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1. 9.Dividends of $12,500 are received on the Jolly Roger Co. investment.Dec.31.Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method. 31.Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. 31.Accrued 3 months of interest on the Nightline bonds. 31.Adjusted the available-for-sale investment portfolio to fair value, using the following fair values: Issuing CompanyFair Value Bernard Co.$34,650 Chadwick Co.57,960 Gozar Inc.98,560 Nightline Co.39,200 For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends.Instructions Determine the missing amounts by letter in the partial balance sheets.Answer A-I on image Pr.15-4A June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.classified as an available-for-sale investment. The bonds pay interest on June 30The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds areclassified as an available-for-sale investment. The bonds pay interest on October1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds areDec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'BrienThe following selected transactions occurred during 20Y5:9. Dividends of $12,500 are received on the Jolly Roger Co. investment.758Chapter 15 InvestmentsThe available-for-sale investments at cost and fair value on December 31, 20Y4, are asfollows:Issuing CompanyCostFair ValueBernard Co.$ 38,250$ 37,500Chadwick Co.63,77065,520$101,270$103,770Jolly Roger Co.Jan.and cd as an available-for-sale investment. The bonds pay interest on June 30and December 31.Oct.L andd as an available-for-sale investment. The bonds pay interest on October1 and April 1.9. Dividends of $12,500 are received on the Jolly Roger Co. investment.Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O brieIndustries Inc, recorded using the equity method.31. Received interest for 6 months on the Gozar Inc, bonds purchased on January 2.31. Accrued 3 months of interest on the Nightline bonds.31. Adjusted the available-for-sale investment portfolio to fair value, using thefollowing fair values:Issuing CompanyFair ValueBernard Co.$34,650Chadwick Co.57,960Gozar Inc.98,560Nightline Co.39,200For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net incomeof $148,230 and paid no dividends.InstructionsDetermine the missing amounts by letter in the partial balance sheets. O'Brien Industries Inc. is a book publisher. The partial balance sheets for December 31,PR 15-4A Equity and available-for-sale investmentsOBJ. 2, 3,4O Dhen hdustries Inc. is a book ublisher. The partial balance sheets for December 31,20Y4 and 20Y5 are as follows:O'Brien Industries Inc.Partial Balance SheetsDecember 3120Υ520Y4Available-for-sale investments (at cost)$103,770a.Valuation allowance for available-for-sale investmentsb.(2,500)Available-for-sale investments (fair value)%24$101,270C.Interest receivable24d.$ 77,000Investment in Jolly Roger Co. stockOffice equipment (net)e.115,000130,000$ f.$ 69,400Total assets%24$666,270Accounts payable$ 65,000Common stock70,00070,000Excess of issue price over par225,000225,000Retained earningsg.308,770Unrealized gain (loss) on available-for-sale investmentsTotal liabilities and stockholders' equityh.(2,500)i.$666,270(Continued)%24%24

a) Available for Sale Investments (at Cost) = Balance as on 20Y4 + Purchase on Jan 2 + Purchase on…

O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows: The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows: The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co. The following selected transactions occurred during 20Y5: Jan. 2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31. June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. Oct. 1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1. 9. Dividends of $12,500 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method. 31. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. 31. Accrued 3 months of interest on the Nightline bonds. 31. Adjusted the available-for-sale investment portfolio to fair value, using the following fair values: Issuing Company Fair Value Bernard Co. $34,650 Chadwick Co. 57,960 Gozar Inc. 98,560 Nightline Co. 39,200 For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends. Instructions Determine the missing amounts by letter in the partial balance sheets. Answer A-I on image Pr.15-4A

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2CP

See similar textbooks

Related questions

Question

O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows:

The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:

The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co.

The following selected transactions occurred during 20Y5:

Jan.	2.	Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31.
June	30.	Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.
Oct.	1.	Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1.
	9.	Dividends of $12,500 are received on the Jolly Roger Co. investment.
Dec.	31.	Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method.
	31.	Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.
	31.	Accrued 3 months of interest on the Nightline bonds.
	31.	Adjusted the available-for-sale investment portfolio to fair value, using the following fair values:
			Issuing Company	Fair Value
			Bernard Co.	$34,650
			Chadwick Co.	57,960
			Gozar Inc.	98,560
			Nightline Co.	39,200

For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends.

Instructions

Determine the missing amounts by letter in the partial balance sheets.
Answer A-I on image Pr.15-4A

June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.
classified as an available-for-sale investment. The bonds pay interest on June 30
The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of
2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are
classified as an available-for-sale investment. The bonds pay interest on October
1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'Brien
The following selected transactions occurred during 20Y5:
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
758
Chapter 15 Investments
The available-for-sale investments at cost and fair value on December 31, 20Y4, are as
follows:
Issuing Company
Cost
Fair Value
Bernard Co.
$ 38,250
$ 37,500
Chadwick Co.
63,770
65,520
$101,270
$103,770
Jolly Roger Co.
Jan.
and cd as an available-for-sale investment. The bonds pay interest on June 30
and December 31.
Oct.
L andd as an available-for-sale investment. The bonds pay interest on October
1 and April 1.
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O brie
Industries Inc, recorded using the equity method.
31. Received interest for 6 months on the Gozar Inc, bonds purchased on January 2.
31. Accrued 3 months of interest on the Nightline bonds.
31. Adjusted the available-for-sale investment portfolio to fair value, using the
following fair values:
Issuing Company
Fair Value
Bernard Co.
$34,650
Chadwick Co.
57,960
Gozar Inc.
98,560
Nightline Co.
39,200
For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income
of $148,230 and paid no dividends.
Instructions
Determine the missing amounts by letter in the partial balance sheets.

O'Brien Industries Inc. is a book publisher. The partial balance sheets for December 31,
PR 15-4A Equity and available-for-sale investments
OBJ. 2, 3,4
O Dhen hdustries Inc. is a book ublisher. The partial balance sheets for December 31,
20Y4 and 20Y5 are as follows:
O'Brien Industries Inc.
Partial Balance Sheets
December 31
20Υ5
20Y4
Available-for-sale investments (at cost)
$103,770
a.
Valuation allowance for available-for-sale investments
b.
(2,500)
Available-for-sale investments (fair value)
%24
$101,270
C.
Interest receivable
24
d.
$ 77,000
Investment in Jolly Roger Co. stock
Office equipment (net)
e.
115,000
130,000
$ f.
$ 69,400
Total assets
%24
$666,270
Accounts payable
$ 65,000
Common stock
70,000
70,000
Excess of issue price over par
225,000
225,000
Retained earnings
g.
308,770
Unrealized gain (loss) on available-for-sale investments
Total liabilities and stockholders' equity
h.
(2,500)
i.
$666,270
(Continued)
%24
%24

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.