Investments are classified as available for sale

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Reference no: EM131812824

Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, 2016, are as follows:

	No. of Shares	Cost per Share	Total Cost	Total Fair Value
Barns Co. Stock	2,800	$15	$42,000	$38,200
Dynasty Co. Stock	900	36	32,400	30,300
			$74,400	$68,500

Note 2. The investment in Quest Co. stock is an equity method investment representing 30% of the outstanding shares of Quest Co.

The following selected investment transactions occurred during 2017:

2017
May 5.	Purchased 3,300 shares of Gypsy, Inc., at $28 per share including brokerage commission. Gypsy, Inc., is classified as an available-for-sale security.
Sept. 1.	Purchased $45,000 of Norton Co. 5%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on September 1 and March 1.
Sept. 9.	Dividends of $12,300 are received on the Quest Co. investment.
Dec. 31.	Quest Co. reported a total net income of $109,000 for 2017. Luminous recorded equity earnings for its share of Quest Co. net income.
Dec. 31.	Accrued four months of interest on the Norton bonds.
Dec. 31.	Adjusted the available-for-sale investment portfolio to fair value using the following fair value per-share amounts:

Available-for-Sale Investments	Fair Value
Barns Co. stock	$14 per share
Dynasty Co. stock	$31 per share
Gypsy Inc. stock	$29 per share
Norton Co. bonds	98 per $100 of face amount

Dec. 31.

Closed the Luminous Publishing Inc. net income of $157,600 for 2017. Luminous paid no dividends during 2017.

Required:

The comparative unclassified balance sheets for December 31, 2017 and 2016 are provided below. Determine the missing amounts in the unclassified balance sheet. Do not round interim calculations. Round final answers to nearest dollar.

Luminous Publishing, Inc.
Balance Sheet
December 31, 2017 and 2016
	Dec. 31, 2017	Dec. 31, 2016
Cash	$212850	$210400
Accounts Receivable (Net)	147300	136400
Available-for-Sale Investments (at Cost) - Note 1		74400
Less Valuation Allowance for Available-for-Sale Investments		5900
Available-for-Sale Investments (Fair Value)	$	$68500
Interest Receivable	$
Investment in Quest Co. Stock - Note 2		$ 74400
Office Equipment (Net)	123700	130200
Total Assets	$	$619900
Accounts Payable	$ 79100	$ 71300
Common Stock	68200	68200
Excess of Issue Price Over Par	217000	217000
Retained Earnings		269300
Unrealized Gain (Loss) on Available-for-Sale Investments		(5900)
Total Liabilities and Stockholders' Equity	$	$619900

Reference no: EM131812824

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