At December 31, 2013, Hull-Meyers Corp. had the following investments that were

Question

At December 31, 2013, Hull-Meyers Corp. had the following investments that were purchased during 2013, its first year of operations:

No investments were sold during 2013. All securities except Security D and Security F are considered short term investments. None of the fair value changes is considered permanent.

Compute the below table to calculate the following.

Cost Fair Value   Trading Securities:   Security A $ 1,000,000 $ 1,011,000   Security B 205,000 201,000       Totals $ 1,205,000 $ 1,212,000   Securities Available-for-Sale:   Security C $ 800,000 $ 870,000   Security D 1,000,000 1,019,000       Totals $ 1,800,000 $ 1,889,000   Securities to Be Held-to-Maturity:   Security E $ 590,000 $ 602,000   Security F 715,000 709,000       Totals $ 1,305,000 $ 1,311,000

No investments were sold during 2013. 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.

Reported on Balance Sheet as: Unrealized gain (loss) included in: Current assets Noncurrent assets Net Income (I/S) Other Comprehensive Income (OCI) Total Comprehensive Income Trading Securities Security A $0 Security B $0 Securities Available-for-Sale Security C $0 Security D $0 Securities to be Held-to-Maturity Security E Security F Totals $0 $0 $0 $0 $0

Explanation / Answer

Reported on Balance Sheet as: Unrealized gain (loss) included in: Current assets Noncurrent assets Net Income (I/S) Other Comprehensive Income (OCI) Total Comprehensive Income Trading Securities Security A       1,011,000               11,000                           11,000 Security B           201,000               (4,000)                           (4,000) Securities Available-for-Sale Security C           870,000                     70,000                           70,000 Security D         1,019,000                     19,000                           19,000 Securities to be Held-to-Maturity Security E           590,000                                    -   Security F             715,000                                    -   Totals $2,672,000 $1,734,000 $7,000 $89,000 $96,000

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