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…

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.

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.

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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