Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2020, Larkspur Inc. had the following balance sheet. LARKSPUR INC. BALANCE SHEET AS OF JANUARY 1, 2020 Assets Equity Cash $50,900 Common

On January 1, 2020, Larkspur Inc. had the following balance sheet.

LARKSPUR INC. BALANCE SHEET AS OF JANUARY 1, 2020

Assets

Equity

Cash $50,900 Common stock $268,800
Debt investments (available-for-sale) 260,100 Accumulated other comprehensive income 42,200
Total $311,000 Total $311,000

The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Larkspur Inc.s available-for-sale debt securities at December 31, 2020, was $193,000; its cost was $141,900. No securities were purchased during the year. Larkspur Inc.s income statement for 2020 was as follows. (Ignore income taxes.)

LARKSPUR INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020

Dividend revenue $4,700
Gain on sale of investments 29,200
Net income $33,900

Prepare a statement of comprehensive income for 2020.

LARKSPUR INC. Statement of Comprehensive Income

$

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Fraud Prevention And Detection

Authors: Joseph T. Wells

5th Edition

1119351987, 9781119351986

More Books

Students also viewed these Accounting questions

Question

2.1 Discuss what ethics means and the sources of ethical guidance.

Answered: 1 week ago

Question

8 What personal development is elearning good at providing?

Answered: 1 week ago

Question

7 What are the principles of action learning?

Answered: 1 week ago