Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, Year 1, are as follows: No. of Shares Cost per Share Total Cost Total Fair Value Bernard Co. stock 2,200 $15 $33,000 $30,000 Chadwick Co. stock 700 40 28.000 26,200 $61,000 $56,200 Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 32% of the outstanding shares of Jolly Roger Co. The following selected investment transactions occurred during Year 2: > May 5. Oct. 1. Oct. 9. Purchased 2,600 shares of Gozar Inc. at $28 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security. 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. Dividends of $10,100 are received on the Jolly Roger Co. investment. Dec. 31: Jolly Roger Co. reported a total net income of $90,000 for Year 2. O'Brien Industri Inc. recorded equity earnings for its share of Jolly Roger Co. net income. Accrued three months of interest on the Nightline bonds. Adjusted the available-for-sale investment portfolio to fair value, using the followi fair value per-share amounts: 31. 31. Available-for-Sale Investments Bernard Co. Stock Chadwick Co. stock Gozar Inc. stock Nightline Co, bonds Fair Value $14 per share $35 per share $29 per share $98 per $100 of face amount 31. Dec. Closed the O'Brien Industries Inc. net income of $129,300. O'Brien 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. Dec. 31, Year 1 $172,700 111,900 61,000 4,800 $56,200 O'Brien Industries Inc. Balance Sheet December 31, Year 2 and Year 1 Dec 31, Year 2 Cash $176,750 Accounts Receivable (Net) 120,900 Available-for-Sale Investments (at Cost) - Note 1 Less Valuation Allowance for Available-for-Sale Investments Available-for-Sale Investments (Fair Value) Interest Receivable Investment in Jolly Roger Co. Stock - Note 2 Office Equipment (Net) 101,500 Total Assets Accounts Payable $ 64,900 Common Stock 55,900 Excess of Issue Price Over Par 178,000 Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Total Liabilities and Stockholders' Equity $ 61,000 106,800 $508,600 $ 58,500 55,900 178,000 221,000 (4,800) $508,600
