Question

O’Brien Industries Inc. is a book publisher. The comparative unclassified balance sheets for December 31, 2015 and 2014 are provided below. Selected missing balances are shown by letters.


The following selected investment transactions occurred during 2015:
May 5. Purchased 3,080 shares of Gozar Inc. at $30 per share including brokerage commission. Gozar Inc. is classified as an available-for-sale security.
Oct. 1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1.
9. Dividends of $12,500 are received on the Jolly Roger Co. investment.
Dec. 31. Jolly Roger Co. reported a total net income of $112,000 for 2015. O’Brien Industries Inc. recorded equity earnings for its share of Jolly Roger Co. net income.
31. Accrued three months of interest on the Nightline bonds.
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
Bernard Co. stock .... $15.40 per share
Chadwick Co. stock ... $46.00 per share
Gozar Inc. stock ...... $32.00 per share
Nightline Co. bonds ..... $98 per $100 of face amount
31. Closed the O’Brien Industries Inc. net income of $146,230 for 2015. O’Brien Industries Inc. paid no dividends during 2015.

Instructions
Determine the missing letters in the unclassified balance sheet. Provide appropriate supportingcalculations.


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  • CreatedFebruary 28, 2014
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