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Prepare the journal entry to record the sale

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Reference no: EM132011146

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?

Reference no: EM132011146

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