Equity and Available-for-Sale Investments O'Brien Industries Inc. is a book publisher. The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows: Issuing Company Cost Fair Value Bernard Co. $30,000 $27,300 Chadwick Co. 32,800 30,700 $62,800 $58,000 The investment in Jolly Roger Co. stock represents 32% of the outstanding shares of Jolly Roger Co. The following selected transactions occurred during 20Y5: Jan. 2. Purchased $64,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31. June 30. Oct. 1. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. Purchased $36,000 of Nightline Co. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1. Dividends of $10,400 are received on the Jolly Roger Co. investment. Jolly Roger Co. reported a total net income of $90,000 for 2015, which O'Brien Industries Inc. recorded using the equity method. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. 9. Dec. 31. 31. 31. 31. Accrued 3 months of interest on the Nightline bonds. Adjusted the available-for-sale investment portfolio to fair value, using the following fair values: Issuing Company Fair Value Bernard Co. $28,000 Chadwick Co. 28,800 Gozar Inc. 66,700 Nightline Co. 35,280 For the year ending December 31, 2045, O'Brien Industries Inc. reported net income of $148,300 and paid no dividends. Required: The comparative unclassified balance sheets for December 31, 2014 and 2045 are provided below. Selected balances are missing. Determine the missing amounts. Use minus sign to indicate the negative amounts. Do not round interim calculations. Round final answers to nearest dollar. O'Brien Industries Inc. Partial Balance Sheets December 31 2015 2014 $62,800 Available-for-Sale Investments (at Cost) Valuation Allowance for Available-for-Sale Investments (4,800) Available-for-Sale Investments (Fair Value) $58,000 The comparative unclassified balance sheets for December 31, 2014 and 2015 are provided below. Selected balances are missing. Determine the missing amounts. Use minus sign to indicate the negative amounts. Do not round interim calculations. Round final answers to nearest dollar. O'Brien Industries Inc. Partial Balance Sheets December 31 2015 2014 Available-for-Sale Investments (at Cost) $62,800 Valuation Allowance for Available-for-Sale Investments (4,800) Available-for-Sale Investments (Fair Value) $ $58,000 Interest Receivable $ Investment in Jolly Roger Co. Stock $61,200 Office Equipment (Net) 101,700 107,100 Total Assets $509,800 Accounts Payable Common Stock Excess of Issue Price Over Par Retained Earnings $65,000 56,100 178,400 $58,600 56,100 178,400 221,500 Unrealized Gain (Loss) on Available-for-Sale Investments (4,800) Total Liabilities and Stockholders' Equity $509,800
