Question
On January 1, 2017, Pina Inc. had the following balance sheet. PINA INC. BALANCE SHEET AS OF JANUARY 1, 2017 Assets Equity Cash $53,600 Common
On January 1, 2017, Pina Inc. had the following balance sheet.
| PINA INC. BALANCE SHEET AS OF JANUARY 1, 2017 | ||||||
| Assets | Equity | |||||
| Cash | $53,600 | Common stock | $253,900 | |||
| Debt investments (available-for-sale) | 233,200 | Accumulated other comprehensive income | 32,900 | |||
| Total | $286,800 | Total | $286,800 | |||
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Pina Inc.s available-for-sale debt securities at December 31, 2017, was $173,800; its cost was $132,200. No securities were purchased during the year. Pina Inc.s income statement for 2017 was as follows. (Ignore income taxes.)
| PINA INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 | ||
| Dividend revenue | $5,500 | |
| Gain on sale of investments | 29,500 | |
| Net income | $35,000 | |
(a) Prepare the journal entry to record the sale of the available-for-sale debt securities in 2017.
(b) Prepare the journal entry to record the Unrealized Holding Gain or Loss for 2017.
(c) Prepare a statement of comprehensive income for 2017.
(d) Prepare a balance sheet as of December 31, 2017.
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