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:

1. No. of Shares		Cost per Share		Total Cost		Total Fair Value
   Bernard Co. stock	2,200		$10		$22,000		$20,000
   Chadwick Co. stock	1,000		40		40,000		37,400
   					$62,000		$57,400

   Note 2. The investment in Jolly Roger Co. stock is an equity method investment representing 30% of the outstanding shares of Jolly Roger Co.

   The following selected investment transactions occurred during Year 2:

   May 5.	Purchased 2,600 shares of Gozar Inc. at $18 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security.
   Oct. 1.	Purchased $36,000 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 $10,300 are received on the Jolly Roger Co. investment.
   Dec. 31.	Jolly Roger Co. reported a total net income of $91,000 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	$35 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 $132,000. 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	$208,750	$174,100
   Accounts Receivable (Net)	122,100	113,100
   Available-for-Sale Investments (at Cost) - Note 1		62,000
   Less Valuation Allowance for Available-for-Sale Investments		4,600
   Available-for-Sale Investments (Fair Value)	$	$57,400
   Interest Receivable	$
   Investment in Jolly Roger Co. Stock - Note 2		$ 61,700
   Office Equipment (Net)	102,600	108,000
   Total Assets	$	$514,300
   Accounts Payable	$ 65,600	$ 59,100
   Common Stock	56,600	56,600
   Excess of Issue Price Over Par	180,000	180,000
   Retained Earnings		223,200
   Unrealized Gain (Loss) on Available-for-Sale Investments		(4,600)
   Total Liabilities and Stockholders' Equity	$	$514,300

Answer 1