Teasdale Inc. manufactures and sells commercial and residential security equipment. The partial balance sheets for December 31, 20Y7 and 20Y8 are as follows:

The available-for-sale investments at cost and fair value on December 31, 20Y7, are as follows:
The Investment in Wright Co. stock represents 30% of the outstanding shares of Wright Co.

The following selected investment transactions occurred during 20Y8:

Jan. 2. Purchased $32,000 of Richter Inc. 5%, 10-year bonds at face value as an availablefor- sale investment. The bonds pay interest on June 30 and December 31.

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

July 12. Dividends of $12,000 are received on the Wright Co. investment.

Oct. 1. Purchased $24,000 of Toon Co. 4%, 10-year bonds at face value as an availablefor- sale investment. The bonds pay interest on October 1 and April 1. Dec. 31. Wright Co. reported a total net income of $80,000 for 20Y8, which Teasdale Inc. recorded using the equity method.
31. Received interest for 6 months on the Richter Inc. bonds purchased on January 2.

31. Accrued interest for 3 months on the Toon Co. bonds purchased on October 1.

31. The fair values of the available-for-sale investments are as follows:
                Issuing                                                     Company Fair Value
                Alvarez Inc.                                                     $39,840
                Hirsch Inc.                                                         49,400
                Richter Inc.                                                        38,400
                Toon Co.                                                            24,240
For the year ending December 31, 20Y8, Teasdale Inc. reported net income of $51,240 and paid no dividends.

Instructions

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

Transcribed Image Text:

Teasdale Inc. Partial Balance Sheets December 31 20Υ8 20Υ7 Available-for-sale investments (at cost) $ 91,200 a. Valuation allowance for available-for-sale investments b. 8,776 Available-for-sale investments (fair value) $ 99,976 C. Interest receivable d. Investment in Wright Co. stock Office equipment (net) $ 69,200 105,000 $538,176 е. 96,000 f. Total assets Accounts payable $ 91,000 $ 72,000 Common stock 80,000 80,000 Excess of issue price over par Retained earnings 250,000 250,000 g. 127,400 Unrealized gain (loss) on available-for-sale investments Total liabilities and stockholders'equity h. 8,776 $604,320 $538,176 %24