O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows:

The available-for-sale investments at cost and fair value on December 31, 20Y4, are as follows:
The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co.

The following selected transactions occurred during 20Y5: 

Jan. 2. Purchased $94,400 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on June 30 and December 31. 

June 30. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.

Oct. 1. Purchased $40,000 of Nightline Co. 6%, 10-year bonds at 100. The bonds are classified as an available-for-sale investment. The bonds pay interest on October1 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 20Y5, which O’Brien Industries Inc. recorded using the equity method.

31. Received interest for 6 months on the Gozar Inc. bonds purchased on January 2.

31. Accrued 3 months of interest on the Nightline bonds.

31. Adjusted the available-for-sale investment portfolio to fair value, using the following fair values:
        Issuing Company                                   Fair Value
        Bernard Co.                                             $34,650
        Chadwick Co.                                             57,960
        Gozar Inc.                                                   98,560
        Nightline Co.                                              39,200
For the year ending December 31, 20Y5, O’Brien Industries Inc. reported net income of $148,230 and paid no dividends.

Instructions

Determine the missing amounts by letter in the partial balance sheets.

Transcribed Image Text:

O'Brien Industries Inc. Partial Balance Sheets December 31 20Υ5 20Υ4 Available-for-sale investments (at cost) $103,770 а. Valuation allowance for available-for-sale investments b. (2,500) $101,270 Available-for-sale investments (fair value) C. Interest receivable 24 d. $ 77,000 Investment in Jolly Roger Co. stock Office equipment (net) Total assets е. 115,000 f. 130,000 $ $666,270 $ 65,000 Accounts payable Common stock 69,400 70,000 70,000 225,000 Excess of issue price over par Retained earnings 225,000 g. 308,770 Unrealized gain (loss) on available-for-sale investments Total liabilities and stockholders'equity h. (2,500) $666,270 $ i. (Continued)