During 2014, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $185,000. There were

Question:

During 2014, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $185,000. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $225,000 and $160,000, respectively. The net income for 2014 was $180,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, 2013:

Copernicus Corporation

Stockholders’ Equity

December 31,

Common stock ................. $ 50,000

Paid-in capital in excess of par .......... 250,000

Retained earnings................. 340,000

Unrealized gain (loss) on available-for-sale investments.. 40,000

Total..................... $680,000

Prepare the Stockholders’ Equity section of the balance sheet for December 31, 2014.

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... Corporation
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A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...