During 2015, Toney Corporation held a portfolio of available-for-sale investments having a cost of $190,000. 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 $180,000, respectively. The net income for 2015 was $175,000, and no dividends were paid during the year. The Shareholders' Equity section of the balance sheet was as follows on December 31, 2014:
Toney Corporation
Shareholders' Equity
December 31, 2014
Common shares ........................................................ $340,000
Retained earnings ...................................................... 395,000
Accumulated other comprehensive income ........................ 35,000
Total ....................................................................... $770,000
1. Journalize the entry to revalue the investments on December 31, 2015.
2. Prepare the Shareholders' Equity section of the balance sheet as at December 31, 2015.