The income statement for Tri-Con, Inc., for the year ended December 31, 2012, was as follows: Tri-Con,

Question:

The income statement for Tri-Con, Inc., for the year ended December 31, 2012, was as follows:

Tri-Con, Inc.

Income Statement (selected items)

For the Year Ended December 31m 2012

Income from operations............... $148,000

Gain on sale of investments............ 12,000

Less unrealized loss on trading investments....... 34,000

Net income................... $126,000

The balance sheet dated December 31, 2011, showed a Retained Earnings balance of $614,000. During 2012, the company purchased trading investments for the first time at a cost of $166,000. In addition, trading investments with a cost of $45,000 were sold at a gain during 2012. The company paid $35,000 in dividends during 2012.

a. Determine the December 31, 2012, Retained Earnings balance.

b. Provide the December 31, 2012, balance sheet disclosure for Trading Investments.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...