Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, 2014 and 2015, plus selected items from comparative balance sheets, are as follows:
Highland Industries Inc.
Selected Income Statement Items
For the Years Ended December 31, 2014 and 2015
2014 2015
Operating income a. g.
Gain (loss) from sale of investments $7,500 $(12,000)
Net income (loss) b. (21,000)
Highland Industries Inc.
Selected Balance Sheet Items
December 31, 2013, 2014, and 2015
Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015
Assets
Available-for-sale investments, at cost $ 90,000 $ 86,000 $102,000
Valuation allowance for available-for-sale investments 12,000 (11,000) h.
Available-for-sale investments, at fair value c. e. i.
Stockholders’ Equity
Unrealized gain (loss) on available-for-sale investments d. f. (16,400)
Retained earnings $175,400 $220,000 j.
There were no dividends.
Determine the missing lettered items.
Answer:
a. $37,100 $44,600 – $7,500
b. $44,600 $220,000 – $175,400
c. $102,000 $90,000 + $12,000
d. $12,000 Same as valuation allowance for available-for-sale investments
e. $75,000 $86,000 – $11,000
f. ($11,000) Same as valuation allowance for available-for-sale investments
g. ($9,000) ($21,000) + $12,000
h. ($16,400) Same as unrealized gain (loss) from available-for-sale investments
i. $85,600 $102,000 – $16,400
j. $199,000 $220,000 – $21,000
Highland Industries Inc.
Selected Income Statement Items
For the Years Ended December 31, 2014 and 2015
2014 2015
Operating income a. g.
Gain (loss) from sale of investments $7,500 $(12,000)
Net income (loss) b. (21,000)
Highland Industries Inc.
Selected Balance Sheet Items
December 31, 2013, 2014, and 2015
Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015
Assets
Available-for-sale investments, at cost $ 90,000 $ 86,000 $102,000
Valuation allowance for available-for-sale investments 12,000 (11,000) h.
Available-for-sale investments, at fair value c. e. i.
Stockholders’ Equity
Unrealized gain (loss) on available-for-sale investments d. f. (16,400)
Retained earnings $175,400 $220,000 j.
There were no dividends.
Determine the missing lettered items.
Answer:
a. $37,100 $44,600 – $7,500
b. $44,600 $220,000 – $175,400
c. $102,000 $90,000 + $12,000
d. $12,000 Same as valuation allowance for available-for-sale investments
e. $75,000 $86,000 – $11,000
f. ($11,000) Same as valuation allowance for available-for-sale investments
g. ($9,000) ($21,000) + $12,000
h. ($16,400) Same as unrealized gain (loss) from available-for-sale investments
i. $85,600 $102,000 – $16,400
j. $199,000 $220,000 – $21,000
