Question
At December 31, 2017, the available-for-sale debt portfolio for Bonita, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $219,625 $188,250 $(31,375
At December 31, 2017, the available-for-sale debt portfolio for Bonita, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $219,625 $188,250 $(31,375 ) B 156,875 175,700 18,825 C 288,650 320,025 31,375 Total $665,150 $683,975 18,825 Previous fair value adjustment balanceDr. 5,020 Fair value adjustmentDr. $13,805 On January 20, 2018, Bonita, Inc. sold security A for $189,505. The sale proceeds are net of brokerage fees. Bonita Inc. reports net income in 2017 of $1,506,000 and in 2018 of $1,757,000. Unrealized holding gains and gains equal $502,000 in 2018.
Exercise 17-10 At December 31, 2017, the available-for-sale debt portfolio for Bonita, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) $(31,375) 18,825 31,375 B $219,625 $188,250 156,875 175,700 288,650 320,025 Total $665,150 $683,975 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. 18,825 5,020 $13,805 On January 20, 2018, Bonita, Inc. sold security A for $189,505. The sale proceeds are net of brokerage fees. Bonita Inc. reports net income in 2017 of $1,506,000 and in 2018 of $1,757,000. Unrealized holding gains and gains equal $502,000 in 2018. Your answer is partially correct. Try again. Prepare a statement of comprehensive income for 2017, starting with net income. BONITA, INC Statement of Comprehensive Income For the Year Ended December 31, 2017 Net Income 1757000 Other Comprehensive Income Unrealized Holding Gains 532120 Comprehensive Income 2289120 LINK TO TEXT Your answer is partially correct. Try again. Prepare a statement of comprehensive income for 2018, starting with net income. BONITA, INC Statement of Comprehensive Income For the Year Ended December 31, 2018 Net Income 1757000 Other Comprehensive Income | Unrealized Holding Gains 502000 Add 1.TReclassification Adjustment for Loss Included in Net Income 30120 T 532120 L Comprehensive Income 2289120 Accumulated Other Comprehensive Income | Beginning Balance, January 1, 2018 13805 Current Period Other Comprehensive income 502000 I J Amount Reclassified from Accumulated Other Comprehensive Income | 30120 | Unrealized Holding Gains 532120 1 Ending Balance, December 31, 2018 545925 LINK TO TEXTStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started