Question

At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, its first year of operations: Cost Fair Value $ 985,000 $ 997,500 190,000 185,400 $1,175,000 $1,182,900 Trading Securities: Security A Security B Totals Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity: Security E Security F Totals $ 785,000 $ 856,500 985,000 1,003,400 $1,770,000 $1,859,900 $ 575,000 $ 586,700 700,000 694,300 $1,275,000 $1,281,000 No investments were sold during 2018. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Required: Compute the below table to calculate the following (Amounts to be deducted should be indicated with a minus sian.)

Answer 1

​​​​

Particulars	Reported on Balance Sheet as:	Unrealized gain (loss) Included in:
Current Assets	Non Current Assets	Net Income (I/S)	Other Comprehensive Income (OCI)	Total Comprehensive Income
Trading Securities:
Security A	$997,500.00		$12,500.00		$12,500.00
Security B	$185,400.00		-$4,600.00		-$4,600.00
Securities Available for sale:
Security C	$856,500.00	$0.00		$71,500.00	$71,500.00
Security D		$$1,003,400.00		$18,400.00	$18,400.00
Securities to be Held to Maturity:
Security E	$575,000.00
Security F		$700,000.00
Totals			$7,900.00	$89,900.00	$97,800.00

Working:

Income = Fair value – book value

Net Income:

Security A = 997,500 – 985,000 = 12,500

Security B = 185,400 – 190,000 = -4,600

Other Comprehensive Income (OCI)

Security C = 856,500 – 785,000 = 71,500

Security D = 1,003,400 – 985,000 = 18,400