Missing Statement Items, Trading Investments JED Capital Inc., makes investments in trading securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are shown in the income statement and balance sheet below: There were no dividends. Determine the missing items. JED Capital Inc. Selected Income Statement Items For the Years Ended December 31, Year 2 and Year 3 Year 2 Year 3 Operating Income Unrealized Gain (Loss) (3,800) Net Income $26,300 Feedback Operating Income-Year 2: Do this after you have calculated requirements (Unrealized Gain (Loss)) and (Net Income). Then subtract (Unrealized Gain (Loss)) from (Net Income). Unrealized Gain (Loss)-Year 2: Year 2 valuation allowance minus Year 1 valuation allowance. Remember when you subtract a negative number the resulting effect is to add the amount. Net Income-Year 2: Year 2 retained earnings minus Year 1 retained earnings. Operating Income-Year 3: The result of working backwards for Year 3 such that net income plus the absolute value of the loss is equal to operating income. JED Capital Inc. Selected Balance Sheet Items December 31, Year 1, Year 2, and Year 3 Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3 Trading Investments, at Cost $231,200 $274,300 $323,200 Valuation Allowance for Trading Investments (11,300) 16,900 Trading Investments, at Fair Value Retained Earnings $272,500 $360,600 Feedback Trading Investments, at Fair Value-Dec. 31, Year 1: The result of adding trading investments plus the valuation allowance for Year 1. Trading Investments, at Fair Value-Dec. 31, Year 2: The result of adding trading investments plus the valuation allowance for Year 2. Valuation Allowance for Trading Investments-Dec. 31, Year 3: Year 2 valuation allowance + Year 3 unrealized loss. Trading Investments, at Fair Value-Dec. 31, Year 3: The result of adding trading investments plus valuation allowance for Year 3. Retained Earnings-Dec. 31, Year 3: The result of retained earnings for Year 2 plus net income Year 3.
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Missing Statement Items, Trading Investments
JED Capital Inc., makes investments in trading securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are shown in the income statement and
balance sheet below:There were no dividends.
Determine the missing items.
JED Capital Inc. Selected Income Statement Items For the Years Ended December 31, Year 2 and Year 3 Year 2 Year 3 Operating Income Unrealized Gain (Loss) (3,800) Net Income $26,300 FeedbackOperating Income-Year 2: Do this after you have calculated requirements (Unrealized Gain (Loss)) and (Net Income). Then subtract (Unrealized Gain (Loss)) from (Net Income).
Unrealized Gain (Loss)-Year 2: Year 2 valuation allowance minus Year 1 valuation allowance. Remember when you subtract a negative number the resulting effect is to add the amount.
Net Income-Year 2: Year 2
retained earnings minus Year 1 retained earnings.Operating Income-Year 3: The result of working backwards for Year 3 such that net income plus the absolute value of the loss is equal to operating income.
JED Capital Inc. Selected Balance Sheet Items December 31, Year 1, Year 2, and Year 3 Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3 Trading Investments, at Cost $231,200 $274,300 $323,200 Valuation Allowance for Trading Investments (11,300) 16,900 Trading Investments, at Fair Value Retained Earnings $272,500 $360,600 FeedbackTrading Investments, at Fair Value-Dec. 31, Year 1: The result of adding trading investments plus the valuation allowance for Year 1.
Trading Investments, at Fair Value-Dec. 31, Year 2: The result of adding trading investments plus the valuation allowance for Year 2.
Valuation Allowance for Trading Investments-Dec. 31, Year 3: Year 2 valuation allowance + Year 3 unrealized loss.
Trading Investments, at Fair Value-Dec. 31, Year 3: The result of adding trading investments plus valuation allowance for Year 3.
Retained Earnings-Dec. 31, Year 3: The result of retained earnings for Year 2 plus net income Year 3.
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