Balance Sheet Presentation, Trading Investments The income statement for Tri-Con, Inc., for the year ended December 31, 2014, was as follows: The balance sheet dated December 31, 2013, showed a Retained Earnings balance of $575,000. During 2014, the company purchased trading investments for the first time at a cost of $156,000. In addition, trading investments with a cost of $42,000 were sold at a gain during 2014. The company paid $33,000 in dividends during 2014. a. Determine the December 31, 2014, Retained Earnings balance. $ Hide Feedback Correct Check My Work Feedback a. Add net income and subtract dividends from beginning retained earnings. Learning Objective 4. b. Provide the December 31, 2014, balance sheet disclosure for Trading Investments. Tri-Con, Inc. Balance Sheet Disclosure for Trading Investments For December 31, 2014 $ $ Solution 1) 2) .

1. Balance Sheet Presentation, Trading Investments
The income statement for Tri-Con, Inc., for the year ended December 31, 2014, was as follows:
The balance sheet dated December 31, 2013, showed a Retained Earnings balance of $575,000.
During 2014, the company purchased trading investments for the first time at a cost of $156,000.
In addition, trading investments with a cost of $42,000 were sold at a gain during 2014. The
company paid $33,000 in dividends during 2014.
a. Determine the December 31, 2014, Retained Earnings balance.
$
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Correct
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a. Add net income and subtract dividends from beginning retained earnings.
Learning Objective 4.
b. Provide the December 31, 2014, balance sheet disclosure for Trading Investments.
Tri-Con, Inc.
Balance Sheet Disclosure for Trading Investments
For December 31, 2014
$
$
Tri-Con, Inc.
Income Statement (selected items)
For the Year Ended December 31, 2014
Income from operations $140,000
Gain on sale of investments 10,000
Less unrealized loss on trading investments 32,000
Net income $118,000

2. Solution
1)
2)
Statement of retained
earnings
Beginning balance 575,000
Add:Net income of the year 118,000
Less:Dividend paid (33,000)
Balance at end 660,000