the income statement for tri con inc for the year ended 257184

The income statement for Tri-Con, Inc., for the year ended December 31, 2012, was as follows:

Tri-Con, Inc.

Income Statement (selected items)

For the Year Ended December 31m 2012

Income from operations………………………………….. $148,000

Gain on sale of investments……………………………… 12,000

Less unrealized loss on trading investments…………….. 34,000

Net income………………………………………………. $126,000

The balance sheet dated December 31, 2011, showed a Retained Earnings balance of $614,000. During 2012, the company purchased trading investments for the first time at a cost of $166,000. In addition, trading investments with a cost of $45,000 were sold at a gain during 2012. The company paid $35,000 in dividends during 2012.

a. Determine the December 31, 2012, Retained Earnings balance.

b. Provide the December 31, 2012, balance sheet disclosure for Trading Investments.

Submit a Comment