(Gain on Sale of Securities and Comprehensive Income) On January 1, 2006, Enid Inc. had the following balance sheet.

The accumulated other comprehensive income related to unrealized holding gains on available-for-sale securities. The fair value of Enid Inc.’s available-for-sale securities at December 31, 2006, was $190,000; its cost was $120,000. No securities were purchased during the year. Enid Inc.’s income statement for 2006 was as follows. (Ignore income taxes.)

Instructions (Assume all transactions during the year were for cash.)

(a) Prepare the journal entry to record the sale of the available-for-sale securities in 2006.

(b) Prepare a statement of comprehensive income for 2006.

(c) Prepare a balance sheet as of December 31, 2006.

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ENID INC. BALANCE SHEET AS OF JANUARY 1, 2006 Assets Equity Cash Available-for-sale securities. $ 50,000 Common stock $250,000 240,000 Accumulated other comprehensive income 40,000 Total $290,000 Total $290,000