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Pearl Inc. had the balance sheet shown below at December 31, 2016. PEARL INC. BALANCE SHEET DECEMBER 31, 2016 Cash $34,800 Accounts payable $64,800
Pearl Inc. had the balance sheet shown below at December 31, 2016. PEARL INC. BALANCE SHEET DECEMBER 31, 2016 Cash $34,800 Accounts payable $64,800 Accounts receivable 60,600 Notes payable (long-term) 79,800 Investments 89,800 Common stock 203,800 Plant assets (net) 138,500 Retained earnings 45,100 Land 69,800 $393,500 $393,500 During 2017, the following occurred. 1. Pearl Inc. sold part of its investment portfolio for $22,100. This transaction resulted in a loss of $4,200 for the firm. The company classifies its investments as available-for-sale. 2. A tract of land was purchased for $28,800 cash. 3. Long-term notes payable in the amount of $32,100 were retired before maturity by paying $32,100 cash. 4. An additional $45,100 in common stock was issued at par.
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