Question

Investment Reporting

O’Brien Industries Inc. is a book publisher.

Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, Year 1, are as follows:

	No. of Shares		Cost per Share		Total Cost		Total Fair Value
Bernard Co. stock	1,900		$10		$19,000		$17,300
Chadwick Co. stock	1,000		45		45,000		42,100
					$64,000		$59,400

Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 32% of the outstanding shares of Jolly Roger Co.

The following selected investment transactions occurred during Year 2:

May 5.	Purchased 2,200 shares of Gozar Inc. at $18 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security.
Oct. 1.	Purchased $39,000 of Nightline Co. 5%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1.
Oct. 9.	Dividends of $10,700 are received on the Jolly Roger Co. investment.
Dec. 31.	Jolly Roger Co. reported a total net income of $92,000 for Year 2. O’Brien Industries Inc. recorded equity earnings for its share of Jolly Roger Co. net income.
31.	Accrued three months of interest on the Nightline bonds.
31.	Adjusted the available-for-sale investment portfolio to fair value, using the following fair value per-share amounts:

Available-for-Sale Investments	Fair Value
Bernard Co. stock	$9 per share
Chadwick Co. stock	$40 per share
Gozar Inc. stock	$19 per share
Nightline Co. bonds	$98 per $100 of face amount

Dec. 31.

Closed the O’Brien Industries Inc. net income of $136,600. O’Brien Industries Inc. paid no dividends during the year.

Required:

The comparative unclassified balance sheets for December 31, Year 2 and Year 1 are provided below. Determine the missing amounts in the unclassified balance sheet. Do not round interim calculations. Round final answers to nearest dollar. Use minus sign to indicate the negative amounts.

O’Brien Industries Inc.
Balance Sheet
December 31, Year 2 and Year 1
	Dec. 31, Year 2	Dec. 31, Year 1
Cash	$216,372	$174,700
Accounts Receivable (Net)	123,700	114,500
Available-for-Sale Investments (at Cost) - Note 1		64,000
Less Valuation Allowance for Available-for-Sale Investments		4,600
Available-for-Sale Investments (Fair Value)	$	$59,400
Interest Receivable	$
Investment in Jolly Roger Co. Stock - Note 2		$ 62,400
Office Equipment (Net)	103,800	109,300
Total Assets	$	$520,300
Accounts Payable	$ 66,400	$ 59,800
Common Stock	57,200	57,200
Excess of Issue Price Over Par	182,100	182,100
Retained Earnings		225,800
Unrealized Gain (Loss) on Available-for-Sale Investments		(4,600)
Total Liabilities and Stockholders' Equity	$	$520,300

Answer 1

	WN
1	Available for Sale				O Brien Industries Inc
		Cost	Fair Value		Balance Sheet
	Barns Stock -1900*9	19000	17100		Dec 31 Yr 2
	Chadwick Stock-1000*40	45000	40000		Particulars	Amount-$	Amount-$
	Gozar Stock-2200*18,2200*19	39600	41800		Cash		216372
	Nightline-390*98	39000	38220		Accounts Receivable		123700
	Total	142600	137120		Available for sale Investment at Cost	142600
2	Investment in Jolly Roger Co Stock				Less Valuation Allowance for available sale of investments	5480
	Beginning Balance		62400		Available for sale investment at fair value		137120
	Net Income -92000*32%		29440		Interest Receivable		488
	Cash Dividends received during the yr		-10700		Investment in Jolly Roger Co Stock		81140
	Closing Balance		81140		Office Equipment		103800
	Accrued int on Night line Bonds for 3 months				Total Assets		662620
	Int Receivable	39000*5%*3/12			Accounts Payable		66400
		488			Common Stock		57200
	WN				Excess of Issue price over par		182100
3	Retained Earnings for the yr ended 31 Dec yr2				Retained Earnings		362400
	Opening Balance	225800			Unrealized gain/(loss)on available for		-5480
	Net Income	136600			sale investments
	Div Declared and paid during the yr				Total Liability and Stockholders Equity		662620
	Balance as 31 Dec Yr2	362400