The income statement for Delta-tec Inc. for the year ended December 31, 2014, was as follows: The

Question:

The income statement for Delta-tec Inc. for the year ended December 31, 2014, was as follows:

The balance sheet dated December 31, 2013, showed a Retained Earnings balance of $825,000. During 2014, the company purchased trading investments for the first time at a cost of $346,000. In addition, trading investments with a cost of $66,000 were sold at a gain during 2014. The company paid $65,000 in dividends during 2014.
a. Determine the December 31, 2014, Retained Earnings balance.
b. Provide the December 31, 2014, balance sheet presentation for TradingInvestments.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...