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pr 15 4a 385309

PR 15 4A

Luminous Publishing, Inc., is a book publisher. The following selected investment transactions occurred during 2013:

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Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, 2012, are as follows:

Note 2. The investment in Quest Co. stock is anequity method investment representing 32% of the outstanding shares of Quest Co.

The comparative unclassified balance sheets for December 31, 2013 and 2012 are provided below. Selected balances are missing. Determine the missing amounts. Enter all amounts as positive numbers. Do not round interim calculations. Round final answers to nearest dollar.

Luminous Publishing, Inc.
Balance Sheet
December 31, 2013 and 2012
Dec. 31, 2013
Dec. 31, 2012
Cash
$178,000
$157,000
Accounts receivable (net)
106,000
98,000
Available for sale investments (at cost) Note 1
$ Correct 13
$ 53,400
Less valuation allowance for available for sale investments
Correct 16
3,900
Available for sale investments (fair value)
$ Correct 19
49,500
Interest receivable
$ Correct 22
Investment in Quest Co. stock Note 2
Correct 24
$ 55,000
Office equipment (net)
90,000
95,000
Total assets
$ Correct 30
$454,500
Accounts payable
$ 56,900
$ 51,400
Common stock
50,000
50,000
Excess of issue price over par
160,000
160,000
Retained earnings
Correct 42
197,000
Unrealized gain (loss) on available for sale investments
Correct 45
(3,900)
Total liabilities and stockholders’ equity
$ Correct 48
$454,500
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