The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows: Delta-tec Inc. Income Statement
The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows:
Income Statement (selected items)
For the Year Ended December 31, 2016
Income from operations
Gain on sale of investments
Less unrealized loss on trading investments
The balance sheet dated December 31, 2015, showed a Retained Earnings balance of $825,000. During 2016, the company purchased trading investments for the first time at a cost of $346,000. In addition, trading investments with a cost of $66,000 were sold at a gain during 2016. The company paid $65,000 in dividends during 2016.
A. Determine the December 31, 2016, Retained Earnings balance.
B. Provide the December 31, 2016, balance sheet presentation for Trading Investments. Refer to the information given and the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.