quity and Available-for Sale Investments OBrien Industries Inc. Is a book publisher. The avallable-forsale investments at cost and fair value on December 31, 20Y4, are as follows: Essuing Company Bernard Co Chadwick Co. Cost Fair Value $16,000 $14,600 31,500 29,500 $47,500 $44,100 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 $34,200 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as anailable-for- sale investment. The bonds pay intereston June 30 and December 31 June Received interest for 6 months on the Gozar Inc. 30. bonds purchased on January 2. Oct. 1. Purchased $27,000 of Nightline Co. 5%, 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. Dividends of $7,900 are received on the Jolly Roger 9. Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $73,000 for 20Y5, which O'Brien Industries Inc. recorded using the equity method. Received interest for 6 months on the Gozar Inc. 31. 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. $14,400 Chadwick Co. 28,000 Gozar Inc. 36,100 Nightline Co. 26,460 For the year ending December 31, 20Y5, O'Brien Industries 1nc. reported net income of $148,500 and paid no dividends. Required: The comparative unclassified halance sheets for December . 31. 20Y4 and 20YS are provided below. Selected balances are missing. Determine the missing amounts. Use minus sign to indicate the negative amounts. Do not round interim calculations. Round final answers to nearest dollar
quity and Available-for Sale Investments OBrien Industries Inc. Is a book publisher. The avallable-forsale investments at cost and fair value on December 31, 20Y4, are as follows: Essuing Company Bernard Co Chadwick Co. Cost Fair Value $16,000 $14,600 31,500 29,500 $47,500 $44,100 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 $34,200 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as anailable-for- sale investment. The bonds pay intereston June 30 and December 31 June Received interest for 6 months on the Gozar Inc. 30. bonds purchased on January 2. Oct. 1. Purchased $27,000 of Nightline Co. 5%, 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. Dividends of $7,900 are received on the Jolly Roger 9. Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $73,000 for 20Y5, which O'Brien Industries Inc. recorded using the equity method. Received interest for 6 months on the Gozar Inc. 31. 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. $14,400 Chadwick Co. 28,000 Gozar Inc. 36,100 Nightline Co. 26,460 For the year ending December 31, 20Y5, O'Brien Industries 1nc. reported net income of $148,500 and paid no dividends. Required: The comparative unclassified halance sheets for December . 31. 20Y4 and 20YS are provided below. Selected balances are missing. Determine the missing amounts. Use minus sign to indicate the negative amounts. Do not round interim calculations. Round final answers to nearest dollar
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Equity and Available-for-Sale Investments
O'Brien Industries Inc. is a book publisher.
The availlable-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:
Issuing Company
Cost
Fair Value
Bernard Co.
$16,000
$14,600
Chadwick Co.
31,500
29,500
$47,500
$44,100
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 $34,200 of Gozar Inc. 5%, 10-year bonds
at 100. The bonds are classified as an vailable-for-
sale investment. The bonds pay Interest'on June 30
and December 31.
June Received interest for 6 months on the Gozar Inc.
30. bonds purchased on January 2.
Oct, 1. Purchased $27,000 of Nightline Co. 5%, 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.
Dividends of $7,900 are received on the Jolly Roger
9.
Co, investment.
Dec. 31. Jolly Roger Co. reported a total net income of $73,000
for 20Y5, which O'Brien Industries Inc. recorded using
the equity method.
Received interest for 6 months on the Gozar Inc.
31.
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:
Fair
Issuing
Company
Value
Bernard Co.
$14,400
Chadwick Co. 28,000
Gozar Inc.
36,100
Nightline Co.
26,460
For the year ending December 31, 20Y5, O'Brien Industries Inc. reported net income of $148,500 and paid no dividends.
Required:
The comparative unclassified balance sheets for December 31, 20Y4 and 20Y5 are provided below. Selected balances are missing. Determine the missing amounts. Use minus sign to indicate the negative amounts. Do not round interim calculations. Round final answers to nearest dollar.
Transcribed Image Text:O'Brien Industries Inc.
Partial Balance Sheets
December 31
20Y5
20Y4
Available-for-Sale Investments (at Cost)
$47,500
Valuation Allowance for Available-for-Sale Investments
(3,400)
Available-for-Sale Investments (Fair Value)
$44,100
Interest Receivable
Investment in Jolly Roger Co. Stock
$49,700
Office Equipment (Net)
82,700
87,000
Total Assets
$414,100
Accounts Payable
Common Stock
$52,800
45,600
144,900
$47,600
45,600
144,900
Excess of Issue Price Over Par
Retained Earnings
179,400
Unrealized Gain (Loss) on Available-for-Sale Investments
(3,400)
Total Liabilities and Stockholders' Equity
$414,100
%24
%24
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