On January 1, 2008, Enid Inc. had the following balance sheet.
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale securities. The fair value of Enid Inc.âs available-for-sale securities at December 31, 2008, was $190,000; its cost was $120,000. No securities were purchased during the year. Enid Inc.âs income statement for 2008 was as follows.
(Ignore income taxes.)
For the Year Ended December 31, 2008
Dividend revenue …………..$15,000
Gain on sale of available-for-sale securities ……20,000
Net income ……………$35,000
(Assume all transactions during the year were for cash.)
(a) Prepare the journal entry to record the sale of the available-for-sale securities in 2008.
(b) Prepare a statement of comprehensive income for 2008.
(c) Prepare a balance sheet as of December 31,2008.