Prepare the stockholders equity section of the balance sheet

Reference no: EM13900610

During 2006, Cosby Corporation held a portfolio of available-for-sale securities having a cost of $260,000. There were no purchases or sales of investments during the year. The market values after adjusting for the impact of taxes, at the beginning and end of the year, were $200,000 and 240,000, respectively. The net income for 2006 was $145,000, and no dividends were paid dur- ing the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, 2005:

Cosby Corporation Stockholders' Equity December 31, 2005

Common stock $ 35,000

Paid-in capital in excess of par value 350,000

Retained earnings 435,000

Accumulated other comprehensive loss (60,000)

Total $760,000

a. Prepare a statement of comprehensive income for 2006.

b. Prepare the Stockholders' Equity section of the balance sheet for December 31, 2006.

Reference no: EM13900610

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