on january 1 2012 acker inc had the following balance 256640

On January 1, 2012, Acker Inc. had the following balance sheet.

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The accumulated other comprehensive income related to unrealized holding gains on available-for-sale securities. The fair value of Acker Inc.’s available-for-sale securities at December 31, 2012, was $190,000; its cost was $140,000. No securities were purchased during the year. Acker Inc.’s income statement for 2012 was as follows. (Ignore income taxes.)

ACKER INC.

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2012

Dividend revenue ……………………….$ 5,000

Gain on sale of investments ……………..30,000

Net income ……………………………..$35,000

Instructions

(Assume all transactions during the year were for cash.)

(a) Prepare the journal entry to record the sale of the available-for-sale securities in 2012.

(b) Prepare a statement of comprehensive income for 2012.

(c) Prepare a balance sheet as of December 31,2012.