[Yaz88]

Hi guys,

So from studying the marketable securities, it says that the unrealized Gains/losses that pertains to AFS securities goes to your balance sheet. However, when doing the JE’s and all, the unrealized Gains/losses goes to OCI (Other comprehensive income) …

So, Isn’t OCI is part of the Income Statmement? So why does it say it goes to your balance sheet (Not the Income St) but in the same time it goes to OCI…

I’m a little confused here, Please clarify.

[Laurren]

OCI is part of Stockholders' Equity on your Balance Sheet

REG 83 - November 2014
FAR 80 - April 2015
BEC 78 - May 2015
AUD 76 - November 2015 (Finally DONE!)

[wawr47aa87]

OCI, which closes out to the balance sheet under Accumulated Other Comprehensive Income, is included in Comprehensive Income. Comprehensive Income = Net Income + OCI

BEC 76 (2/15)
REG 81 (4/15)
AUD 78 (5/15)
FAR 81 (7/15)

Roger + Ninja MCQ

[Anonymous]

Assets = Liabilities + Owners Equity

– AFS investment goes up, meaning assets go up.

– To keep the equation in balance, we increase Owner's Equity for the same amount.

– Debit AFS Investment (Adjustment) and Credit Unrealized Gain (type of revenue).

– At the end of the period, close unrealized gain to OCI.

– At the end of the period, close OCI to AOCI, which is a line in the Equity section of the balance sheet.

Investment XX

Unrealized Gain/Revenue XX – To record the gain on the security

Unrealized Gain/Revenue XX

Other Comprehensive Income XX – Close revenue to OCI. In real life, just increase investment and OCI.

Other Comprehensive Income XX

Accumulated Other Comprehensive Income XX – Close out OCI.

Net Income is to Retained Earnings what OCI is to AOCI.

[Yaz88]

thanks a lot to you all!! Makes sense now

[Author]

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