O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows: The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows: The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co. The following selected transactions occurred during 20Y5: Jan. 2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31. June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. Oct. 1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1. 9. Dividends of $12,500 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method. 31. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. 31. Accrued 3 months of interest on the Nightline bonds. 31. Adjusted the available-for-sale investment portfolio to fair value, using the following fair values: Issuing Company Fair Value Bernard Co. $34,650 Chadwick Co. 57,960 Gozar Inc. 98,560 Nightline Co. 39,200 For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends. Instructions Determine the missing amounts by letter in the partial balance sheets. Answer A-I on image Pr.15-4A
O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows: The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows: The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co. The following selected transactions occurred during 20Y5: Jan. 2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31. June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. Oct. 1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1. 9. Dividends of $12,500 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method. 31. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. 31. Accrued 3 months of interest on the Nightline bonds. 31. Adjusted the available-for-sale investment portfolio to fair value, using the following fair values: Issuing Company Fair Value Bernard Co. $34,650 Chadwick Co. 57,960 Gozar Inc. 98,560 Nightline Co. 39,200 For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends. Instructions Determine the missing amounts by letter in the partial balance sheets. Answer A-I on image Pr.15-4A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows:
The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:
The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co.
The following selected transactions occurred during 20Y5:
Jan. | 2. | Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31. | ||
June | 30. | Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. | ||
Oct. | 1. | Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1. | ||
9. | Dividends of $12,500 are received on the Jolly Roger Co. investment. | |||
Dec. | 31. | Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method. | ||
31. | Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. | |||
31. | Accrued 3 months of interest on the Nightline bonds. | |||
31. | Adjusted the available-for-sale investment portfolio to fair value, using the following fair values: | |||
Issuing Company | Fair Value | |||
Bernard Co. | $34,650 | |||
Chadwick Co. | 57,960 | |||
Gozar Inc. | 98,560 | |||
Nightline Co. | 39,200 |
For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends.
Instructions
-
Determine the missing amounts by letter in the partial balance sheets.
- Answer A-I on image Pr.15-4A
![June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.
classified as an available-for-sale investment. The bonds pay interest on June 30
The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of
2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are
classified as an available-for-sale investment. The bonds pay interest on October
1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'Brien
The following selected transactions occurred during 20Y5:
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
758
Chapter 15 Investments
The available-for-sale investments at cost and fair value on December 31, 20Y4, are as
follows:
Issuing Company
Cost
Fair Value
Bernard Co.
$ 38,250
$ 37,500
Chadwick Co.
63,770
65,520
$101,270
$103,770
Jolly Roger Co.
Jan.
and cd as an available-for-sale investment. The bonds pay interest on June 30
and December 31.
Oct.
L andd as an available-for-sale investment. The bonds pay interest on October
1 and April 1.
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O brie
Industries Inc, recorded using the equity method.
31. Received interest for 6 months on the Gozar Inc, bonds purchased on January 2.
31. Accrued 3 months of interest on the Nightline bonds.
31. Adjusted the available-for-sale investment portfolio to fair value, using the
following fair values:
Issuing Company
Fair Value
Bernard Co.
$34,650
Chadwick Co.
57,960
Gozar Inc.
98,560
Nightline Co.
39,200
For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income
of $148,230 and paid no dividends.
Instructions
Determine the missing amounts by letter in the partial balance sheets.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F671ab28e-d7e0-411c-b2a8-7bebb87f7077%2F7c71cfdd-aeb4-4d97-bd23-d26267e328a0%2Fy34thle_processed.jpeg&w=3840&q=75)
Transcribed Image Text:June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.
classified as an available-for-sale investment. The bonds pay interest on June 30
The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of
2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are
classified as an available-for-sale investment. The bonds pay interest on October
1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'Brien
The following selected transactions occurred during 20Y5:
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
758
Chapter 15 Investments
The available-for-sale investments at cost and fair value on December 31, 20Y4, are as
follows:
Issuing Company
Cost
Fair Value
Bernard Co.
$ 38,250
$ 37,500
Chadwick Co.
63,770
65,520
$101,270
$103,770
Jolly Roger Co.
Jan.
and cd as an available-for-sale investment. The bonds pay interest on June 30
and December 31.
Oct.
L andd as an available-for-sale investment. The bonds pay interest on October
1 and April 1.
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O brie
Industries Inc, recorded using the equity method.
31. Received interest for 6 months on the Gozar Inc, bonds purchased on January 2.
31. Accrued 3 months of interest on the Nightline bonds.
31. Adjusted the available-for-sale investment portfolio to fair value, using the
following fair values:
Issuing Company
Fair Value
Bernard Co.
$34,650
Chadwick Co.
57,960
Gozar Inc.
98,560
Nightline Co.
39,200
For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income
of $148,230 and paid no dividends.
Instructions
Determine the missing amounts by letter in the partial balance sheets.
![O'Brien Industries Inc. is a book publisher. The partial balance sheets for December 31,
PR 15-4A Equity and available-for-sale investments
OBJ. 2, 3,4
O Dhen hdustries Inc. is a book ublisher. The partial balance sheets for December 31,
20Y4 and 20Y5 are as follows:
O'Brien Industries Inc.
Partial Balance Sheets
December 31
20Υ5
20Y4
Available-for-sale investments (at cost)
$103,770
a.
Valuation allowance for available-for-sale investments
b.
(2,500)
Available-for-sale investments (fair value)
%24
$101,270
C.
Interest receivable
24
d.
$ 77,000
Investment in Jolly Roger Co. stock
Office equipment (net)
e.
115,000
130,000
$ f.
$ 69,400
Total assets
%24
$666,270
Accounts payable
$ 65,000
Common stock
70,000
70,000
Excess of issue price over par
225,000
225,000
Retained earnings
g.
308,770
Unrealized gain (loss) on available-for-sale investments
Total liabilities and stockholders' equity
h.
(2,500)
i.
$666,270
(Continued)
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F671ab28e-d7e0-411c-b2a8-7bebb87f7077%2F7c71cfdd-aeb4-4d97-bd23-d26267e328a0%2F1wm7wyo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:O'Brien Industries Inc. is a book publisher. The partial balance sheets for December 31,
PR 15-4A Equity and available-for-sale investments
OBJ. 2, 3,4
O Dhen hdustries Inc. is a book ublisher. The partial balance sheets for December 31,
20Y4 and 20Y5 are as follows:
O'Brien Industries Inc.
Partial Balance Sheets
December 31
20Υ5
20Y4
Available-for-sale investments (at cost)
$103,770
a.
Valuation allowance for available-for-sale investments
b.
(2,500)
Available-for-sale investments (fair value)
%24
$101,270
C.
Interest receivable
24
d.
$ 77,000
Investment in Jolly Roger Co. stock
Office equipment (net)
e.
115,000
130,000
$ f.
$ 69,400
Total assets
%24
$666,270
Accounts payable
$ 65,000
Common stock
70,000
70,000
Excess of issue price over par
225,000
225,000
Retained earnings
g.
308,770
Unrealized gain (loss) on available-for-sale investments
Total liabilities and stockholders' equity
h.
(2,500)
i.
$666,270
(Continued)
%24
%24
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