Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows:Please see the attachment for details:There were no dividends.Determine the missing lettered items. Highland Industries Inc.Selected Income Statement ItemsFor the Years Ended December 31, Year 2 and Year 3Year 2Year 3Operating incomea.g.Gain (loss) from sale of investments$7,500$(12,000)Net income (loss)b.(21,000)Highland Industries Inc.Selected Balance Sheet ItemsDecember 31, Year 1, Year 2, and Year 3Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3Assets$ 90,000$ 86,000$102,000Available-for-sale investments, at costValuation allowance for available-for-sale investments(11,000)h.12,000Available-for-sale investments, at fair valueC.i.e.Stockholders' EquityUnrealized gain (loss) on available-for-sale investmentsRetained earningsd.f.(16,400)$220,000$175,400j.

Available-for-sale securities: These are short-term or long-term investments in debt and equity…

Answered: Highland Industries Inc. Selected…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows:

Please see the attachment for details:

There were no dividends.
Determine the missing lettered items.

Highland Industries Inc.
Selected Income Statement Items
For the Years Ended December 31, Year 2 and Year 3
Year 2
Year 3
Operating income
a.
g.
Gain (loss) from sale of investments
$7,500
$(12,000)
Net income (loss)
b.
(21,000)
Highland Industries Inc.
Selected Balance Sheet Items
December 31, Year 1, Year 2, and Year 3
Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3
Assets
$ 90,000
$ 86,000
$102,000
Available-for-sale investments, at cost
Valuation allowance for available-for-sale investments
(11,000)
h.
12,000
Available-for-sale investments, at fair value
C.
i.
e.
Stockholders' Equity
Unrealized gain (loss) on available-for-sale investments
Retained earnings
d.
f.
(16,400)
$220,000
$175,400
j.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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