close solutoin list

Balance sheet presentation of available-for-ale investments During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $ 185,000. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $225,000 and $160,000, respectively. The net income for Year 2 was $180,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, Year 1: Copernicus Corporation Stockholders' Equity December 31, Year 1 Common stock $ 50.000 Paid-in capital in excess of par 250.000 Retained earnings 340,000 Unrealized gain on available-for-sale investments 40.000 Total $680,000 Prepare the Stockholders’ Equity section of the balance sheet for December 31, Year 2.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 15, Problem 15.24EX
Textbook Problem

Balance sheet presentation of available-for-ale investments

During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $ 185,000. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $225,000 and $160,000, respectively. The net income for Year 2 was $180,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, Year 1:

Copernicus Corporation

Stockholders' Equity

December 31, Year 1

Common stock $ 50.000
Paid-in capital in excess of par 250.000
Retained earnings 340,000
Unrealized gain on available-for-sale investments 40.000
Total $680,000

Prepare the Stockholders’ Equity section of the balance sheet for December 31, Year 2.

Expert Solution

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Chapter 15 Solutions

Accounting
Show all chapter solutions
Ch. 15 - Bond investment transactions Journalize the...Ch. 15 - Bond investment transactions Journalize the...Ch. 15 - Stock investment transactions On January 23,...Ch. 15 - Stock investment transactions On September 12,...Ch. 15 - Equity method On January 2, Cohan Company acquired...Ch. 15 - Equity method On January 2, Yorkshire Company...Ch. 15 - Valuing trading securities at fair value On...Ch. 15 - Valuing trading securities at fair value On...Ch. 15 - valuing available-for-sale securities at fair...Ch. 15 - Valuing available-for-sale securities at fair...Ch. 15 - Dividend yield On June 30, Setzer Corporation had...Ch. 15 - Dividend yield On October 23, Wilkerson Company...Ch. 15 - Entries for investment in bonds, interest and sale...Ch. 15 - Entries for investments in bonds, interest, and...Ch. 15 - Entries for investment in bonds, interest and sale...Ch. 15 - Entries for investment in bonds, interest and sale...Ch. 15 - Interest on bond investments On February 1, Hansen...Ch. 15 - Entries for investment in stock, receipt of...Ch. 15 - Entries for investment in stock, receipt of...Ch. 15 - Entries for stock investments, dividends, and sale...Ch. 15 - Entries for stock investments, dividends, and sale...Ch. 15 - Equity method for stock investment At a total cost...Ch. 15 - Equity method for stock investment On January 4,...Ch. 15 - Equity method for stock investment with loss On...Ch. 15 - Equity method for stock investment Hawkeye...Ch. 15 - Missing statement items, trading investments JED...Ch. 15 - Fair value journal entries, trading investments...Ch. 15 - Fair value journal entries, trading investments...Ch. 15 - Fair value journal entries, trading investments...Ch. 15 - Balance sheet presentation, trading investments...Ch. 15 - Missing statement items, available-for-sale...Ch. 15 - Fair value journal entries, availableforsale...Ch. 15 - Fair value journal entries, available for sale...Ch. 15 - Fair value journal entries, availableforsale...Ch. 15 - Balance sheet presentation of available-for-sale...Ch. 15 - Balance sheet presentation of available-for-ale...Ch. 15 - Dividend yield At the market close on May 12 of a...Ch. 15 - Dividend yield The market price for Microsoft...Ch. 15 - Dividend yield eBay Inc. developed a web-based...Ch. 15 - Comprehensive income On May 12, Year 1, Chewco Co....Ch. 15 - Comprehensive income On December 31, Year 1, Valur...Ch. 15 - Debt investment transactions, available-for-sale...Ch. 15 - Stock investment transactions, trading securities...Ch. 15 - Stock investment transactions, equity method and...Ch. 15 - Investment reporting O'Brien Industries Inc. is a...Ch. 15 - Debt investment transactions, available for-sale...Ch. 15 - Stock investment transactions, trading securities...Ch. 15 - Stock investment transactions, equity method and...Ch. 15 - Investment reporting Teasdale Inc. manufactures...Ch. 15 - Selected transactions completed by Equinox...Ch. 15 - Ethics in Action Financial assets include stock...Ch. 15 - Reporting investments Group Project In groups of...Ch. 15 - Warren Buffett and "look-through" earnings...Ch. 15 - Benefits of fair value On July 16, 20Y1, Wyatt...Ch. 15 - International fair value accounting International...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Compare the four forms of competition.

Foundations of Business (MindTap Course List)

FOREIGN INVESTMENT ANALYSIS After all foreign and U.S. taxes, a U.S. corporation expects to receive 3 pounds of...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)