Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items. Income StatementFor the Year Ended December 31,The income stateme$299,700Income from operationsGain on sale of investments17,800(72,500)$245,000Unrealized loss on trading investmentsNet incomea. Determine the December 31, Year 2, Retained Earnings balance.EX 15-19 Missing statement items, available-for-sale securitiesHighland Industries Inc. makes investments in available-for-sale securities Salstatement items for the years ended December 31, Year 2 and Year 3, plus celefrom comparative balance sheets, are as follows:Highland Industries Inc.Selected Income Statement ItemsFor the Years Ended December 31, Year 2 and Year 3Year 2Year 3Operating incomeGain (loss) from sale of investmentsg.o$(12,000)a.tor $7,500b.Net income (loss)(21,000)Highland Industries Inc.Selected Balance Sheet ItemsDecember 31, Year 1, Year 2, and Year 3Dec. 31, Year 1 Dec. 31, Year 2 DeAssetsAvailable-for-sale investments, at cost$ 90,000$ 86,000Valuation allowance for available-for-sale investments12,000(11,000)Available-for-sale investments, at fair valuee.Stockholders' EquityUnrealized gain (loss) on available-for-sale investmentsRetained earningsd.f.$175,400$220,000There were no dividends.Determine the missing lettered items.EX 15-20 Fair value journal entries, available-for-sale investmentsThe investments of Steelers Inc. include a single investment: 33,100 sharescommon stock purchased on September 12, Year 1, for $13 per share includingmission. These shares were classified as available-for-sale securities. As of th.Year 1, balance sheet date, the share price declined to $11 per share.a. Journalize the entries to acquire the investment on September 12 andjustment to fair value on December 31, Year 1.b. How is the unrealized gain or loss for available-for-sale investments cfinancial statements?

b=Retained Earning of Year 2-Retained Earning of Year 1=$220,000-$175,400=$44,600 a=Net Income of…

Answered: Highland Industries Inc. makes…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Highland Industries Inc. makes investments in avaialable-for-sale securities. Selected income statement items for the years ended December 321, Year 2 and 3, plus selected items from comparative balance sheets, are as follows. There were no dividends. Determine the missing lettered items.

Income Statement
For the Year Ended December 31,
The income stateme
$299,700
Income from operations
Gain on sale of investments
17,800
(72,500)
$245,000
Unrealized loss on trading investments
Net income
a. Determine the December 31, Year 2, Retained Earnings balance.
EX 15-19 Missing statement items, available-for-sale securities
Highland Industries Inc. makes investments in available-for-sale securities Sal
statement items for the years ended December 31, Year 2 and Year 3, plus cele
from comparative balance sheets, are as follows:
Highland Industries Inc.
Selected Income Statement Items
For the Years Ended December 31, Year 2 and Year 3
Year 2
Year 3
Operating income
Gain (loss) from sale of investments
g.o
$(12,000)
a.
tor $7,500
b.
Net income (loss)
(21,000)
Highland Industries Inc.
Selected Balance Sheet Items
December 31, Year 1, Year 2, and Year 3
Dec. 31, Year 1 Dec. 31, Year 2 De
Assets
Available-for-sale investments, at cost
$ 90,000
$ 86,000
Valuation allowance for available-for-sale investments
12,000
(11,000)
Available-for-sale investments, at fair value
e.
Stockholders' Equity
Unrealized gain (loss) on available-for-sale investments
Retained earnings
d.
f.
$175,400
$220,000
There were no dividends.
Determine the missing lettered items.
EX 15-20 Fair value journal entries, available-for-sale investments
The investments of Steelers Inc. include a single investment: 33,100 shares
common stock purchased on September 12, Year 1, for $13 per share including
mission. These shares were classified as available-for-sale securities. As of th.
Year 1, balance sheet date, the share price declined to $11 per share.
a. Journalize the entries to acquire the investment on September 12 and
justment to fair value on December 31, Year 1.
b. How is the unrealized gain or loss for available-for-sale investments c
financial statements?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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