Question
Investment Reporting OBrien Industries Inc. is a book publisher. Note 1. Investments are classified as available for sale. The investments at cost and fair value
Investment Reporting
OBrien Industries Inc. is a book publisher.
Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, Year 1, are as follows:
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No. of Shares Cost per Share Total Cost Total Fair Value Bernard Co. stock 2,200 $10 $22,000 $20,000 Chadwick Co. stock 1,000 40 40,000 37,400 $62,000 $57,400 Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 30% of the outstanding shares of Jolly Roger Co.
The following selected investment transactions occurred during Year 2:
May 5. Purchased 2,600 shares of Gozar Inc. at $18 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security. Oct. 1. Purchased $36,000 of Nightline Co. 5%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1. Oct. 9. Dividends of $10,300 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $91,000 for Year 2. OBrien Industries Inc. recorded equity earnings for its share of Jolly Roger Co. net income. 31. Accrued three months of interest on the Nightline bonds. 31. Adjusted the available-for-sale investment portfolio to fair value, using the following fair value per-share amounts: Available-for-Sale Investments Fair Value Bernard Co. stock $9 per share Chadwick Co. stock $35 per share Gozar Inc. stock $19 per share Nightline Co. bonds $98 per $100 of face amount Dec. 31. Closed the OBrien Industries Inc. net income of $132,000. OBrien Industries Inc. paid no dividends during the year. Required:
The comparative unclassified balance sheets for December 31, Year 2 and Year 1 are provided below. Determine the missing amounts in the unclassified balance sheet. Do not round interim calculations. Round final answers to nearest dollar. Use minus sign to indicate the negative amounts.
OBrien Industries Inc. Balance Sheet December 31, Year 2 and Year 1 Dec. 31, Year 2 Dec. 31, Year 1 Cash $208,750 $174,100 Accounts Receivable (Net) 122,100 113,100 Available-for-Sale Investments (at Cost) - Note 1 62,000 Less Valuation Allowance for Available-for-Sale Investments 4,600 Available-for-Sale Investments (Fair Value) $ $57,400 Interest Receivable $ Investment in Jolly Roger Co. Stock - Note 2 $ 61,700 Office Equipment (Net) 102,600 108,000 Total Assets $ $514,300 Accounts Payable $ 65,600 $ 59,100 Common Stock 56,600 56,600 Excess of Issue Price Over Par 180,000 180,000 Retained Earnings 223,200 Unrealized Gain (Loss) on Available-for-Sale Investments (4,600) Total Liabilities and Stockholders' Equity $ $514,300
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