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P17-10 Intermediate Accounting, 13th edition, Kieso Weygandt Warfield (Gain on Sale of Securities and Comprehensive Income) the following balance...
P17-10 Intermediate Accounting, 13th edition, Kieso Weygandt Warfield (Gain on Sale of Securities and Comprehensive Income) the following balance sheet. ACKER INC. BALANCE SHEET AS OF JANUARY 1, 2010 Assets Cash Available-for-sale securities Total $ 50,000 240,000 $290,000 On January 1, 2010, Acker Inc. had Equity Common stock Accumulated other comprehensive income Total $260,000 30,000 $290,000 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale securities. The fair value of Acker Inc.s available-for-sale securities at December 31, 2010, was $190,000; its cost was $140,000. No securities were purchased during the year. Acker Inc.s income statement for 2010 was as follows. (Ignore income taxes.) ACKER INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2010 Dividend revenue Gain on sale of available-for-sale securities Net income $ 5,000 30,000 $35,000 Instructions (Assume all transactions during the year were for cash.) (a) Prepare the journal entry to record the sale of the available-for-sale securities in 2010. (b) Prepare a statement of comprehensive income for 2010. (c) Prepare a balance sheet as of December 31, 2010.
Answer1) Journal EntryParticularsAmount $Available for sale of security50,000Total holding gainsCash5,000Dividend Amount $50,0005,000 Jan. 1st 2010Face value of securities Available for...