Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items.
Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items.
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 2PB
Related questions
Question
Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items.
![Income Statement
For the Year Ended December 31,
The income stateme
$299,700
Income from operations
Gain on sale of investments
17,800
(72,500)
$245,000
Unrealized loss on trading investments
Net income
a. Determine the December 31, Year 2, Retained Earnings balance.
EX 15-19 Missing statement items, available-for-sale securities
Highland Industries Inc. makes investments in available-for-sale securities Sal
statement items for the years ended December 31, Year 2 and Year 3, plus cele
from comparative balance sheets, are as follows:
Highland Industries Inc.
Selected Income Statement Items
For the Years Ended December 31, Year 2 and Year 3
Year 2
Year 3
Operating income
Gain (loss) from sale of investments
g.o
$(12,000)
a.
tor $7,500
b.
Net income (loss)
(21,000)
Highland Industries Inc.
Selected Balance Sheet Items
December 31, Year 1, Year 2, and Year 3
Dec. 31, Year 1 Dec. 31, Year 2 De
Assets
Available-for-sale investments, at cost
$ 90,000
$ 86,000
Valuation allowance for available-for-sale investments
12,000
(11,000)
Available-for-sale investments, at fair value
e.
Stockholders' Equity
Unrealized gain (loss) on available-for-sale investments
Retained earnings
d.
f.
$175,400
$220,000
There were no dividends.
Determine the missing lettered items.
EX 15-20 Fair value journal entries, available-for-sale investments
The investments of Steelers Inc. include a single investment: 33,100 shares
common stock purchased on September 12, Year 1, for $13 per share including
mission. These shares were classified as available-for-sale securities. As of th.
Year 1, balance sheet date, the share price declined to $11 per share.
a. Journalize the entries to acquire the investment on September 12 and
justment to fair value on December 31, Year 1.
b. How is the unrealized gain or loss for available-for-sale investments c
financial statements?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6f81a79-cd7b-4052-87d6-1d0632c3139f%2F60229047-964f-4943-a1be-9d49a23ff57e%2F5jphd35_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Income Statement
For the Year Ended December 31,
The income stateme
$299,700
Income from operations
Gain on sale of investments
17,800
(72,500)
$245,000
Unrealized loss on trading investments
Net income
a. Determine the December 31, Year 2, Retained Earnings balance.
EX 15-19 Missing statement items, available-for-sale securities
Highland Industries Inc. makes investments in available-for-sale securities Sal
statement items for the years ended December 31, Year 2 and Year 3, plus cele
from comparative balance sheets, are as follows:
Highland Industries Inc.
Selected Income Statement Items
For the Years Ended December 31, Year 2 and Year 3
Year 2
Year 3
Operating income
Gain (loss) from sale of investments
g.o
$(12,000)
a.
tor $7,500
b.
Net income (loss)
(21,000)
Highland Industries Inc.
Selected Balance Sheet Items
December 31, Year 1, Year 2, and Year 3
Dec. 31, Year 1 Dec. 31, Year 2 De
Assets
Available-for-sale investments, at cost
$ 90,000
$ 86,000
Valuation allowance for available-for-sale investments
12,000
(11,000)
Available-for-sale investments, at fair value
e.
Stockholders' Equity
Unrealized gain (loss) on available-for-sale investments
Retained earnings
d.
f.
$175,400
$220,000
There were no dividends.
Determine the missing lettered items.
EX 15-20 Fair value journal entries, available-for-sale investments
The investments of Steelers Inc. include a single investment: 33,100 shares
common stock purchased on September 12, Year 1, for $13 per share including
mission. These shares were classified as available-for-sale securities. As of th.
Year 1, balance sheet date, the share price declined to $11 per share.
a. Journalize the entries to acquire the investment on September 12 and
justment to fair value on December 31, Year 1.
b. How is the unrealized gain or loss for available-for-sale investments c
financial statements?
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