Problem - On January 1, 2014, Acker Inc. had the following balance sheet.
ACKER INC. BALANCE SHEET AS OF JANUARY 1, 2014
Assets
Cash - $50,000
Equity investments (available-for-sale) - 240,000
Total - $290,000
Equity
Common stock - $260,000
Accumulated other comprehensive income - 30,000
Total - $290,000
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale securities. The fair value of Acker Inc. available-for-sale securities at December 31, 2014 was $190,000; its cost was $140,000. No securities were purchased during the year. Acker Inc. income statement for 2014 was as follows. (Ignore income taxes)
ACKER INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014
Dividend revenue - $5,000
Gain on sale of investments - 30,000
Net income - $35,000
A. Prepare the journal entry to record the sale of the available-for-sale securities in 2014?
B. Prepare a statement of comprehensive income for 2014?
C. Prepare a balance sheet as of December 31, 2014?