On December 31, 2017, the available-for-sale debt portfolio for Sweet, Inc. is as follows.
| Security | Cost | Fair Value | Unrealized Gain (Loss) |
||||
| A | $44,625 | $38,250 | $(6,375 | ) | |||
| B | 31,875 | 35,700 | 3,825 | ||||
| C | 58,650 | 65,025 | 6,375 | ||||
| Total | $135,150 | $138,975 | 3,825 | ||||
| Previous fair value adjustment balance—Dr. | 1,020 | ||||||
| Fair value adjustment—Dr. | $2,805 | ||||||
On January 20, 2018, Sweet, Inc. sold security A for $38,505. The sale proceeds are net of brokerage fees.
Sweet Inc. reports net income in 2017 of $306,000 and in 2018 of $357,000. Unrealized holding gains and gains equal $102,000 in 2018.
a) Prepare a statement of comprehensive income for 2017, starting with net income.
b) Prepare a statement of comprehensive income for 2018, starting with net income. Get Accounting homework help today
