Question
Balance Sheet Presentation, Trading Investments The income statement for Delta-tec, Inc., for the year ended December 31, Year 2, was as follows: Delta-tec, Inc. Income
Balance Sheet Presentation, Trading Investments
The income statement for Delta-tec, Inc., for the year ended December 31, Year 2, was as follows:
Delta-tec, Inc. | |
Income Statement (selected items) | |
For the Year Ended December 31, Year 2 | |
Income from operations | $163,000 |
Gain on sale of investments | 11,000 |
Unrealized loss on trading investments | (36,000) |
Net income | $138,000 |
The balance sheet dated December 31, Year 1, showed a Retained Earnings balance of $672,000. During Year 2, the company purchased trading investments for the first time at a cost of $182,000. In addition, trading investments with a cost of $50,000 were sold at a gain during Year 2. The company paid $39,000 in dividends during Year 2.
a. Determine the December 31, Year 2, Retained Earnings balance. $
b. Provide the December 31, Year 2, balance sheet disclosure for Trading Investments.
Delta-tec, Inc. | |
Balance Sheet Disclosure for Trading Investments | |
For December 31, Year 2 | |
$ | |
$ |
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