Answer Happy

Balance Sheet Presentation, Trading Investments
The income statement for Delta-tec Inc. for the year ended
December 31, Year 2, was as follows:
The balance sheet dated December 31, Year 1, showed a Retained
Earnings balance of $825,000. During Year 2, 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 Year 2. The company paid $65,000 in dividends during
Year 2.
a. Determine the December 31, Year 2,
Retained Earnings balance.
$fill in the blank d352c208f047048_1
b. Provide the December 31, Year 2,
balance sheet presentation for Trading Investments.
Dividend RevenueIncome from OperationsTrading Investments (at
Cost)Unrealized Loss on Trading InvestmentsValuation Allowance for
Trading Investments
Less Cash DividendsLess Income from OperationsLess Unrealized
Loss on Trading InvestmentsLess Valuation Allowance for Trading
InvestmentsLess Trading Investments (at Fair Value)
Gain on Sale of InvestmentsUnrealized Gain on Trading
InvestmentsUnrealized Loss on Trading InvestmentsValuation
Allowance for Trading InvestmentsTrading Investments (at Fair
Value)