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Guardian Devices, Inc., manufactures and sellscommercial and residential security equipment.The comparative unclassified balance sheets for December 31, 2013 and 2012 are provided below. Selected missing balances are shown by letters.

Guardian Devices, Inc. Balance SheetDecember 31, 2013 and 2012\begin{array}{c} \textbf{Guardian Devices, Inc.}\\ \textbf{ Balance Sheet}\\ \textbf{December 31, 2013 and 2012}\\ \end{array}

Dec. 31, 2013Dec. 31, 2012 Cash$104,000$98,000Accounts Receivable (net)71,00067,500Available-for-sale investments (at cost)-Note 136,000Plus valuation allowance for avaialable-for-sale investment6,000Available-for-sale investments (fair value)$c.$42,000Interest receivable$Investment in Quest Co. stock—Note 2$62,000Office equipment (net)60,00065,000Total assets$334,500Accounts payable$56,900$45,100Common Stock50,00050,000Excess of issue price over par160,000160,000Retained earnings73,400Less unrealized gain (loss) on available-for-sale invesmetns6,000Total liabilities and stockholders’ equity$$334,500\begin{array}{lrr} \hline&\textbf{Dec. 31, 2013}&\textbf{Dec. 31, 2012 }\\ \hline\text{Cash}&\$104,000&\$98,000\\ \text{Accounts Receivable (net)}&71,000&67,500\\ \text{Available-for-sale investments (at cost)-Note 1}&&36,000\\ \text{Plus valuation allowance for avaialable-for-sale investment}&\underline{}&\underline{6,000}\\ \text{Available-for-sale investments (fair value)}&\underline{\$c.}&\underline{\$42,000}\\ \text{Interest receivable}&\$ & --\\ \text{Investment in Quest Co. stock—Note 2}&&\$62,000\\ \text{Office equipment (net)}&\underline{60,000}&\underline{65,000}\\ \quad\text{Total assets}&\underline{}&\underline{\$334,500}\\ \text{Accounts payable}&\$56,900&\$45,100\\ \text{Common Stock}&50,000&50,000\\ \text{Excess of issue price over par}&160,000&160,000\\ \text{Retained earnings}&&73,400\\ \text{Less unrealized gain (loss) on available-for-sale invesmetns}&\underline{}&\underline{6,000}\\ \text{Total liabilities and stockholders' equity}&\$ &\$334,500\\ \hline\hline \end{array}

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

No. of Shares Cost per Share  Total Cost  Total Fair Value  Tyndale Inc. Stock 600$24$14,400$17,000UR-Smart Inc. Stock1,2001821,60025,000$36,000$42,000\begin{array}{lccc} &\textbf {No. of Shares} & \textbf { Cost per Share } & \textbf { Total Cost } & \textbf { Total Fair Value } \\ \hline \text { Tyndale Inc. Stock } & 600& \$ 24& \$ 14,400&\$17,000\\ \text {UR-Smart Inc. Stock} & 1,200&18& \underline{21,600}& \underline{25,000}\\ &&&\underline{\underline{\$36,000}}&\underline{\underline{\$42,000}} \end{array}

Note 2. The Investment in Omaha Co. stock is an equity method investment representing 32% of the outstanding shares of Omaha Co.The following selected investment transactions occurred during 2013: Apr. 21. Purchased 500 shares of Walton Winery, Inc., at $25 including brokerage commission. Walton Winery is classifi ed as an available-for-sale security. Sept. 9. Dividends of$7,500 are received on the Omaha Co. investment. Oct. 1. Purchased $15,000 of Yokohama Co. 6%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1. Dec. 31. Omaha Co. reported a total net income of$50,000 for 2013. Guardian recorded equity earnings for its share of Omaha Co. net income. Dec. 31. Accrued interest for three months on Yokohama bonds purchased on October 1. 31. Adjusted the available-for-sale investment portfolio to fair value using the ollowing fair value per-share amounts:

Available-for-SaleInvestmentFair ValueTyndale Inc. Stock$26 per shareUR-Smart,Inc., Stock$ 15 per shareWalton Winery, Inc., stock$30 per shareYokohama Co. bonds101 per $100 of face value\begin{array}{ll} \textbf{Available-for-Sale}\\ \textbf{Investment}&\textbf{Fair Value}\\ \hline \text{Tyndale Inc. Stock}&\text{\$26 per share}\\ \text{UR-Smart,Inc., Stock}&\text{\$ 15 per share}\\ \text{Walton Winery, Inc., stock}&\text{\$30 per share}\\ \text{Yokohama Co. bonds}&\text{101 per \$100 of face value}\\ \end{array}

  1. Closed the Guardian Devices, Inc., net income of $28,925 for 2013. Guardian paid no dividends during 2013. Instructions Determine the missing letters in the unclassified balance sheet. Provide appropriate supporting calculations.

Define an aquifer. How common are aquifers in the United States?


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An aquifer is a porous or broken soil or reservoir rock that has a groundwater table and is permeable enough for water to freely move. The aquifers could be utilised in efforts to sequester carbon dioxide in the ground.

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