O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows:       The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:     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 $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31. June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. Oct. 1. Purchased $40,000 of Nightline Co. 6%, 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.   9. Dividends of $12,500 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method.   31. Received interest for 6 months on the Gozar Inc. 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. $34,650        Chadwick Co. 57,960        Gozar Inc. 98,560        Nightline Co. 39,200  For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends. Instructions   Determine the missing amounts by letter in the partial balance sheets. Answer A-I on image Pr.15-4A

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows:

 
 
 

The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:

 
 

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 $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31.
June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.
Oct. 1. Purchased $40,000 of Nightline Co. 6%, 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.
  9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O’Brien Industries Inc. recorded using the equity method.
  31. Received interest for 6 months on the Gozar Inc. 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. $34,650 
      Chadwick Co. 57,960 
      Gozar Inc. 98,560 
      Nightline Co. 39,200 

For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends.

Instructions

 

  • Determine the missing amounts by letter in the partial balance sheets.

  • Answer A-I on image Pr.15-4A
June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.
classified as an available-for-sale investment. The bonds pay interest on June 30
The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of
2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are
classified as an available-for-sale investment. The bonds pay interest on October
1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'Brien
The following selected transactions occurred during 20Y5:
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
758
Chapter 15 Investments
The available-for-sale investments at cost and fair value on December 31, 20Y4, are as
follows:
Issuing Company
Cost
Fair Value
Bernard Co.
$ 38,250
$ 37,500
Chadwick Co.
63,770
65,520
$101,270
$103,770
Jolly Roger Co.
Jan.
and cd as an available-for-sale investment. The bonds pay interest on June 30
and December 31.
Oct.
L andd as an available-for-sale investment. The bonds pay interest on October
1 and April 1.
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O brie
Industries Inc, recorded using the equity method.
31. Received interest for 6 months on the Gozar Inc, 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.
$34,650
Chadwick Co.
57,960
Gozar Inc.
98,560
Nightline Co.
39,200
For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income
of $148,230 and paid no dividends.
Instructions
Determine the missing amounts by letter in the partial balance sheets.
Transcribed Image Text:June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2. classified as an available-for-sale investment. The bonds pay interest on June 30 The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of 2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O'Brien The following selected transactions occurred during 20Y5: 9. Dividends of $12,500 are received on the Jolly Roger Co. investment. 758 Chapter 15 Investments The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows: Issuing Company Cost Fair Value Bernard Co. $ 38,250 $ 37,500 Chadwick Co. 63,770 65,520 $101,270 $103,770 Jolly Roger Co. Jan. and cd as an available-for-sale investment. The bonds pay interest on June 30 and December 31. Oct. L andd as an available-for-sale investment. The bonds pay interest on October 1 and April 1. 9. Dividends of $12,500 are received on the Jolly Roger Co. investment. Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 20Y5, which O brie Industries Inc, recorded using the equity method. 31. Received interest for 6 months on the Gozar Inc, 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. $34,650 Chadwick Co. 57,960 Gozar Inc. 98,560 Nightline Co. 39,200 For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends. Instructions Determine the missing amounts by letter in the partial balance sheets.
O'Brien Industries Inc. is a book publisher. The partial balance sheets for December 31,
PR 15-4A Equity and available-for-sale investments
OBJ. 2, 3,4
O Dhen hdustries Inc. is a book ublisher. The partial balance sheets for December 31,
20Y4 and 20Y5 are as follows:
O'Brien Industries Inc.
Partial Balance Sheets
December 31
20Υ5
20Y4
Available-for-sale investments (at cost)
$103,770
a.
Valuation allowance for available-for-sale investments
b.
(2,500)
Available-for-sale investments (fair value)
%24
$101,270
C.
Interest receivable
24
d.
$ 77,000
Investment in Jolly Roger Co. stock
Office equipment (net)
e.
115,000
130,000
$ f.
$ 69,400
Total assets
%24
$666,270
Accounts payable
$ 65,000
Common stock
70,000
70,000
Excess of issue price over par
225,000
225,000
Retained earnings
g.
308,770
Unrealized gain (loss) on available-for-sale investments
Total liabilities and stockholders' equity
h.
(2,500)
i.
$666,270
(Continued)
%24
%24
Transcribed Image Text:O'Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, PR 15-4A Equity and available-for-sale investments OBJ. 2, 3,4 O Dhen hdustries Inc. is a book ublisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows: O'Brien Industries Inc. Partial Balance Sheets December 31 20Υ5 20Y4 Available-for-sale investments (at cost) $103,770 a. Valuation allowance for available-for-sale investments b. (2,500) Available-for-sale investments (fair value) %24 $101,270 C. Interest receivable 24 d. $ 77,000 Investment in Jolly Roger Co. stock Office equipment (net) e. 115,000 130,000 $ f. $ 69,400 Total assets %24 $666,270 Accounts payable $ 65,000 Common stock 70,000 70,000 Excess of issue price over par 225,000 225,000 Retained earnings g. 308,770 Unrealized gain (loss) on available-for-sale investments Total liabilities and stockholders' equity h. (2,500) i. $666,270 (Continued) %24 %24
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