Balance Sheet Presentation of Available-for-Sale Investments During 2014, Toney
ID: 2461139 • Letter: B
Question
Balance Sheet Presentation of Available-for-Sale Investments During 2014, Toney Corporation held a portfolio of available-for-sale securities having a cost of $210,300. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $248,200 and $199,800, respectively. The net income for 2014 was $193,500, and no dividends were paid during the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, 2013:
Toney Corporation Stockholders' Equity December 31, 2013
Common stock $44,000
Paid-in capital in excess of par 332,000
Retained earnings 437,400
Unrealized gain (loss) on available-for- sale investments 37,900
Total 851,300
Prepare the Stockholders' Equity section of the balance sheet for December 31, 2014.
Toney Corporation Balance Sheet (selected Stockholders' Equity items) December 31, 2014
Explanation / Answer
There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $248,200 and $199,800, So there is a Unrealized loss on available for sale investments of $10,500.
The Stockholders' Equity section of the balance sheet for December 31, 2014:
Toney Corporation Stockholders' Equity December 31, 2014
Common stock $44,000
Paid-in capital in excess of par 332,000
Retained earnings 630,900 (i.e.$437,400 + $193500)
Unrealized gain (loss) on available-for- sale investments (10,500) i.e. $37900 - loss $248200 -$19980)
Total 996,400
Toney Corporation Balance Sheet (selected Stockholders' Equity items) December 31, 2014 :
Common Stock = $44,000
Paid-in capital in excess of par = $332,000
Retained Earnings = $630,900
Unrealized gain (loss) on
available-for-sale investments = ($10,500)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.