Question
At December 31, 2020, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,400 $14,900 $(2,500
At December 31, 2020, the available-for-sale debt portfolio for Pharoah, Inc. is as follows.
Security | Cost | Fair Value | Unrealized Gain (Loss) | ||||
A | $17,400 | $14,900 | $(2,500 | ) | |||
B | 11,300 | 15,500 | 4,200 | ||||
C | 22,200 | 25,900 | 3,700 | ||||
Total | $50,900 | $56,300 | 5,400 | ||||
Previous fair value adjustment balanceDr. | 400 | ||||||
Fair value adjustmentDr. | $5,000 |
On January 20, 2021, Pharoah, Inc. sold security A for $15,000. The sale proceeds are net of brokerage fees. Pharoah, Inc. reports net income in 2020 of $119,000 and in 2021 of $147,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021.
(a)
Correct answer icon
Your answer is correct.
Prepare a statement of comprehensive income for 2020, starting with net income.
PHAROAH, INC Statement of Comprehensive Income December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 | ||||
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss | $ | |||
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss | ||||
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss | ||||
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss | $ |
eTextbook and Media
Attempts: 1 of 5 used
(b)
Prepare a statement of comprehensive income for 2021, starting with net income.
PHAROAH, INC Statement of Comprehensive Income For the Month Ended December 31, 2021December 31, 2021For the Year Ended December 31, 2021 | ||||
Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss | $ | |||
Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss | ||||
Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss | $ | |||
AddLess: Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss | ||||
Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss | $ | |||
Current Period Other Comprehensive incomeBeginning Balance, January 1, 2021Accumulated Other Comprehensive IncomeUnrealized Holding GainsAmount Reclassified from Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2021 | ||||
Ending Balance, December 31, 2021Current Period Other Comprehensive incomeAccumulated Other Comprehensive IncomeBeginning Balance, January 1, 2021Unrealized Holding GainsAmount Reclassified from Accumulated Other Comprehensive Income | $ | |||
Current Period Other Comprehensive incomeAccumulated Other Comprehensive IncomeEnding Balance, December 31, 2021Amount Reclassified from Accumulated Other Comprehensive IncomeBeginning Balance, January 1, 2021Unrealized Holding Gains | $ | |||
Beginning Balance, January 1, 2021Unrealized Holding GainsAmount Reclassified from Accumulated Other Comprehensive IncomeCurrent Period Other Comprehensive incomeEnding Balance, December 31, 2021Accumulated Other Comprehensive Income | ||||
Unrealized Holding GainsBeginning Balance, January 1, 2021Current Period Other Comprehensive incomeAmount Reclassified from Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2021Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive IncomeAmount Reclassified from Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2021Current Period Other Comprehensive incomeUnrealized Holding GainsBeginning Balance, January 1, 2021 | $ |
Step 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