On January 1, 2025, Artic Inc. had the following balance sheet: Cash Assets Debt investments (available-for-sale) Total ARTIC INC. BALANCE SHEET AS OF JANUARY 1, 2025 $71,000 363,000 $434,000 (a) ARTIC INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 Interest revenue $11,000 Gain on sale of investments 28,000 Net income $39,000 (Assume all transactions during the year were for cash.) Equity Common stock Accumulated other comprehensive income Total $389,000 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Artic Inc.'s available-for-sale debt securities at December 31, 2025, was $310,000; its cost was $277,000. No debt securities were purchased during the year. Artic Inc.'s income statement for 2025 was as follows: (Ignore income taxes.) 45,000 $434,000 Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (Credit account titles are automatically
On January 1, 2025, Artic Inc. had the following balance sheet: Cash Assets Debt investments (available-for-sale) Total ARTIC INC. BALANCE SHEET AS OF JANUARY 1, 2025 $71,000 363,000 $434,000 (a) ARTIC INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 Interest revenue $11,000 Gain on sale of investments 28,000 Net income $39,000 (Assume all transactions during the year were for cash.) Equity Common stock Accumulated other comprehensive income Total $389,000 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Artic Inc.'s available-for-sale debt securities at December 31, 2025, was $310,000; its cost was $277,000. No debt securities were purchased during the year. Artic Inc.'s income statement for 2025 was as follows: (Ignore income taxes.) 45,000 $434,000 Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (Credit account titles are automatically
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3E
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