Balance Sheet Presentation of Available-for-Sale Investments
Response to the following problem:
During 2012, Toney Corporation held a portfolio of available-for-sale securities having a cost of $196,900. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $232,300 and $187,100, respectively. The net income for 2012 was $181,100, and no dividends were paid during the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, 2011: Toney Corporation Stockholders' Equity December 31, 2011
Common stock $41,000
Paid-in capital in excess of par value 311,000,
Retained earnings 409,600
Unrealized gain (loss) on available-for- sale investments 35,400
Total 797,000
Prepare the Stockholders' Equity section of the balance sheet for December 31, 2012.