LM's, Inc. reported net income for the year ending December 31 of $483,500. Dividends paid during the year totaled $52,900. The company holds available-for-sale securities with an original cost of $162,000 and a fair value of $181,000 at the end of the year. They also hold trading securities with an original cost of $150,000 and a fair value of $147,000. Retained earnings on January 1 was $736,400 and accumulated other comprehensive income on January 1 as $16,200.

Calculate the following balances to be reported in the financial statements dated December 31.
a. Valuation allowance for available-for-sale securities
b. Comprehensive income
c. Retained earnings
d. Accumulated other comprehensive income

Question

Calculate the following balances to be reported in the financial statements dated December 31.
a.	Valuation allowance for available-for-sale securities
b.	Comprehensive income
c.	Retained earnings
d.	Accumulated other comprehensive income

Quizplus · Accepted Answer

The Answer of LM's, Inc. reported net income for the year ending December 31 of $483,500. Dividends paid during the year totaled $52,900.  The company holds available-for-sale securities with an original cost of $162,000 and a fair value of $181,000 at the end of the year.  They also hold trading securities with an original cost of $150,000 and a fair value of $147,000.   Retained earnings on January 1 was $736,400 and accumulated other comprehensive income on January 1 as $16,200.

Calculate the following balances to be reported in the financial statements dated December 31.
a.	Valuation allowance for available-for-sale securities
b.	Comprehensive income
c.	Retained earnings
d.	Accumulated other comprehensive income

LM's, Inc Reported Net Income for the Year Ending December 31