During 2015, Toney Corporation held a portfolio of available-for-sale investments having a cost of $190,000. There were

Question:

During 2015, Toney held a of available-for-sale investments having a cost of $190,000. 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 $180,000, respectively. The net income for 2015 was $175,000, and no dividends were paid during the year. The Shareholders' Equity section of the was as follows on December 31, 2014:
Toney Equity
December 31, 2014
Common shares ........................................................ $340,000
Retained earnings ...................................................... 395,000
Accumulated other comprehensive income ........................ 35,000
Total ....................................................................... $770,000
1. Journalize the entry to revalue the investments on December 31, 2015.
2. Prepare the Shareholders' Equity section of the as at December 31, 2015.
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
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Portfolio
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...