Balance Sheet Presentation of Available-for-Sale Investments During 2014, Toney

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 $213,500. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $251,900 and $202,800, respectively. The net income for 2014 was $196,400, and no dividends were paid during the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, 2013:

Prepare the Stockholders' Equity section of the balance sheet for December 31, 2014.

Toney Corporation

Balance Sheet (selected Stockholders' Equity items)

December 31, 2014

  

$  

  

  

  

  

  

  

Total

$  

Toney Corporation
Stockholders' Equity
December 31, 2013 Common stock $45,000 Paid-in capital in excess of par 337,000 Retained earnings 444,100 Unrealized gain (loss) on available-for- sale investments 38,400 Total 864,500

Explanation / Answer

Toney Corporation Balance Sheet (selected Stockholders' Equity items) December 31, 2014 Common stock $45,000 Paid-in capital in excess of par $337,000 Retained earnings ($444,100 +196,400) $640,500 Unrealized gain (loss) on available-for-sale investments (38400+(202800-251900) -$10,700 Total $1,011,800

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