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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
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 15E
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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?
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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