a.) Prepare the Journal Entry to record the sale of the available-for-sale secur

Question

a.) Prepare the Journal Entry to record the sale of the available-for-sale securities in 2014.

b.) Prepare the Statement of comprehensive income.

c.) Prepare the balance sheet.

Problem 17-10 (Part Level Submission) On January 1, 2014, Acker Inc. had the following balance sheet. ACKER INC. BALANCE SHEET AS OF JANUARY 1, 2014 Cash Equity investments (available-for- sale) Total $52,540 Common stock Accumulated other comprehensive income $260,790 34,410 $295,200 242,660 $295,200Total The accumulated other comprehensive income related to unrealized holding gains on available-for-sale securities. The fair value of Acker Inc.'s available-for-sale securities at December 31, 2014, was $200,980; its cost was $149,390. No securities were purchased during the year. Acker Inc.'s income statement for 2014 was as follows ACKER INC INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Dividend revenue Gain on sale of investments Net income $5,100 48,010 $53,110

Explanation / Answer

a.)

Working:

b.)

c.)

Date General Journal Debit Credit Dec. 31, 2014 Cash 106870 Equity investments 58860 Gain on sale of investments 48010 (To record the sale of available-for-sale securities)

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