Question

Problem 17-9 On January 1, 2017, Shamrock Inc. had the following balance sheet. SHAMROCK INC. BALANCE SHEET AS OF JANUARY 1, 2017 Assets Equity Cash $51,800 Common stock $249,100 Debt investments (available-for-sale) 247,100 Accumulated other comprehensive income 49,800 Total $298,900 Total $298,900 The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Shamrock Inc.’s available-for-sale debt securities at December 31, 2017, was $212,800; its cost was $151,800. No securities were purchased during the year. Shamrock Inc.’s income statement for 2017 was as follows. (Ignore income taxes.) SHAMROCK INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Dividend revenue $5,100 Gain on sale of investments 30,400 Net income $35,500

Prepare the journal entry to record the sale of the available-for-sale debt securities in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Debit Credit Account Titles and Explanation SHOW LIST OF ACCOUNTS Prepare the journal entry to record the Unrealized Holding Gain or Loss for 2017. (Credit a ccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the acccount titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS statement of comprehensive income for 2017. Prepare SHAMROCK INC. Statement of Comprehensive Income For the Year Ended December 31, 2017 SHOW LIST OF ACCOUNTS Prepare a balance sheet as of December 31, 2017. SHAMROCK INC. Balance Sheet (Partial) Assets Liabilities and Stockholders' Equity Open Show Work Click if you would like to Show Work for this question:

Answer 1

Bank ac dr 212800

to salemof securities 212800

salenof securities ac dr 212800

to securities available for sale 151800

to profit on sale ac 61000

Securities for sale are marked to market as of balance sheet date and this provision is reversed on the next day hence no impact of fair valuation