On January 1, 2025, Artic Inc. had the following balance sheet: Cash Assets Debt investments (available-for-sale) Total ARTIC INC. BALANCE SHEET AS OF JANUARY 1, 2025 $71,000 363,000 $434,000 (a) ARTIC INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 Interest revenue $11,000 Gain on sale of investments 28,000 Net income $39,000 (Assume all transactions during the year were for cash.) Equity Common stock Accumulated other comprehensive income Total $389,000 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Artic Inc.'s available-for-sale debt securities at December 31, 2025, was $310,000; its cost was $277,000. No debt securities were purchased during the year. Artic Inc.'s income statement for 2025 was as follows: (Ignore income taxes.) 45,000 $434,000 Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (Credit account titles are automatically
On January 1, 2025, Artic Inc. had the following balance sheet: Cash Assets Debt investments (available-for-sale) Total ARTIC INC. BALANCE SHEET AS OF JANUARY 1, 2025 $71,000 363,000 $434,000 (a) ARTIC INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 Interest revenue $11,000 Gain on sale of investments 28,000 Net income $39,000 (Assume all transactions during the year were for cash.) Equity Common stock Accumulated other comprehensive income Total $389,000 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Artic Inc.'s available-for-sale debt securities at December 31, 2025, was $310,000; its cost was $277,000. No debt securities were purchased during the year. Artic Inc.'s income statement for 2025 was as follows: (Ignore income taxes.) 45,000 $434,000 Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (Credit account titles are automatically
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On January 1, 2025, Artic Inc. had the following balance sheet:
Cash
Total
Debt investments (available-for-sale) 363,000
$434,000
Assets
Interest revenue
ARTIC INC.
BALANCE SHEET
AS OF JANUARY 1, 2025
ARTIC INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2025
$11,000
Gain on sale of investments
Net income
$71,000 Common stock
(a)
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value
of Artic Inc.'s available-for-sale debt securities at December 31, 2025, was $310,000; its cost was $277,000. No debt securities were
purchased during the year. Artic Inc.'s income statement for 2025 was as follows: (Ignore income taxes.)
28,000
$39,000
(Assume all transactions during the year were for cash.)
Accumulated other comprehensive income
Total
Equity
$389,000
Debit
45,000
$434,000
Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for
the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52476ee9-c360-4937-8f5a-8576cacac103%2Fc672b564-18a7-4cc9-8e7a-f68cc014cfb1%2Fwfj7tua_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2025, Artic Inc. had the following balance sheet:
Cash
Total
Debt investments (available-for-sale) 363,000
$434,000
Assets
Interest revenue
ARTIC INC.
BALANCE SHEET
AS OF JANUARY 1, 2025
ARTIC INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2025
$11,000
Gain on sale of investments
Net income
$71,000 Common stock
(a)
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value
of Artic Inc.'s available-for-sale debt securities at December 31, 2025, was $310,000; its cost was $277,000. No debt securities were
purchased during the year. Artic Inc.'s income statement for 2025 was as follows: (Ignore income taxes.)
28,000
$39,000
(Assume all transactions during the year were for cash.)
Accumulated other comprehensive income
Total
Equity
$389,000
Debit
45,000
$434,000
Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for
the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Credit
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