Problem 17-09 (Part Level Submission) On January 1, 2020, Ayayai Inc. had the following balance sheet. AYAYAI INC. BALANCE SHEET AS OF JANUARY 1, 2020 Assets Equity Cash Debt investments (available-for-sale) $245,400 39,000 $51,500 Common stock 232,900 Accumulated other comprehensive income Total $284,400 Total $284,400 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Ayayai Inc.'s available-for-sale debt securities at December 31, 2020, was $196,300; its cost was $147,000. No securities were purchased during the year. Ayayai Inc.'s income statement for 2020 was as follows. (Ignore income taxes.) AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Dividend revenue $4,500 Gain on sale of investments 31,300
Problem 17-09 (Part Level Submission) On January 1, 2020, Ayayai Inc. had the following balance sheet. AYAYAI INC. BALANCE SHEET AS OF JANUARY 1, 2020 Assets Equity Cash Debt investments (available-for-sale) $245,400 39,000 $51,500 Common stock 232,900 Accumulated other comprehensive income Total $284,400 Total $284,400 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Ayayai Inc.'s available-for-sale debt securities at December 31, 2020, was $196,300; its cost was $147,000. No securities were purchased during the year. Ayayai Inc.'s income statement for 2020 was as follows. (Ignore income taxes.) AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Dividend revenue $4,500 Gain on sale of investments 31,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
thank you.
Transcribed Image Text:Problem 17-09 (Part Level Submission)
On January 1, 2020, Ayayai Inc. had the following balance sheet.
AYAYAI INC.
BALANCE SHEET
AS OF JANUARY 1, 2020
Rectangular Snip
Assets
Equity
Cash
$51,500
Common stock
$245,400
Debt investments (available-for-sale)
232,900 Accumulated other comprehensive income
39,000
Total
$284,400 Total
$284,400
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Ayayai Inc.'s available-for-sale debt securities at December 31, 2020, was $196,300; its cost was $147,000. No securities were purchased
during the year. Ayayai Inc.'s income statement for 2020 was as follows. (Ignore income taxes.)
AYAYAI INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Dividend revenue
$4,500
Gain on sale of investments
31,300
Net income
$35,800
Transcribed Image Text:Prepare the journal entry to record the sale of the available-for-sale debt securities in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
cash
142500
Debt Investments
111200
Gain on Sale of Investn
31300
Click if you would like to Show Work for this question: Open Show Work
Attempts: 2 of 3 used
SAVE FOR LATER
SUBMIT ANSWER
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education