At December 31, 2020, the trading securities for Tamarisk Company are as follows: Security Cost Fair Value A $18,880 $23,600 B 40,120 37,760 $59,000 $61,360 Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entriy.) Debit Credit Account Titles and Explanation
Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…
A: Note: Since the payment is being made on monthly basis, the effective rate of interest will be…
Q: The following information on a defined benefit plan is provided: FVPA, beg beg 2,200,000 Current…
A: Defined Benefit Plan Employees of the entity are given with a defined benefit plan after they have…
Q: B. Blackwell Limited issued 8,500,000 shares of stock. Currently, the per share. If all else remains…
A: As per the information provided: Shares issued - 8,500,000 Market price - $10 per share
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of…
A: Depreciation formula as per straight line method = (Cost- residual value)/useful life
Q: The earliest period IAS 1 issuance is on ______. (MM/YYYY)
A: solution concept IAS refers to international accounting standard IAS is issued by international…
Q: 3. Ignoring income tax, by what amount should shareholders' equity be increased for 2021 and 2022 in…
A: The question is related to the Accounting for Property, Plant and Equipment Revaluation method.…
Q: In a store that sells souvenirs, suppose an agent receives a $1 commission for each unit sold, and…
A: Agent is appointed by the principal in order to sell the goods. for selling the certain percentage…
Q: What kind of assets are relatively long-lived and depreciate over time?
A: Asset is a resource tangible or otherwise on which owner has control and benefits accrue to the…
Q: Elliptical Consulting Adjusted Trial Balance For the Year Ended June 30, 2019
A: The balance sheet shows the financial position of the company. It involves the assets, liabilities,…
Q: Current Distribution of Contributed Property. Andrew contributed investment land having an $18,000…
A: You have posted multiple sub-parts, we will solve the first three sub-parts for you given below.
Q: CBRE Group purchased 10,000 Dover Corporation bonds in 2018 for $59 per bond and classified the…
A: Bonds are a type of long-term debt that is issued by a company. the bonds are issued by those…
Q: Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc.,…
A: Answer:- Income definition:- In simple words income can be defined as the amount of money received…
Q: Venus corp has the following income statement for the year 2020 Gross sales Sales return Sales…
A: Solution: Net income before tax = P25,000 Interest expense = P30,000 Earnings before interest and…
Q: Labor-related overhead costs assigned to Model O are (E) a. $240,000 C. $217,000 $192.000 b $232.000…
A: Introduction:- The activity rate is calculated as estimated overhead (activity cost pool) by the…
Q: Budgets are useful vehicles for communication. Critically discuss the above statement and provide…
A: In cost accounting and management accounting, the budget is considered as an effective tool.…
Q: Use the information from the Adjusted Trial Balance and Financial Statement templates provided in…
A: Statement of Owner's Equity - Statement of owner's equity includes amount contributed by the owner…
Q: When studying a project, the following variable costs were estimated for a normal production…
A: The Break-even point (BEP) indicates the level of sales (in units or value) that a company should…
Q: Describe ways that system theory can help you implement an OD intervention.
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: payables after 60 days. One of its suppliers has offered the company an early settlement di of 0.5%…
A:
Q: Budgeted indirect costs Budgeted customer orders Budgeted production units Budgeted direct…
A: Formula: Budgeted indirect cost rate per direct manufacturing labor hour = Budgeted indirect costs…
Q: What is the value of revenue to have operating income of $100,000? Units 3,000 Per Unit Revenue…
A: Revenue to earn desired income of $100000 = (Fixed cost + Desired profit)/contribution margin per…
Q: Variable costs of Spring Roll LtD are 2000 €, fixed costs are 1000 € and revenue is 7000 €…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: a particular process for use in the process of a certain type of article that is manufactured by her…
A: Given as, Incurred expenditure amounting= R22,500 Incurred patent registration= R3,000
Q: Using Microsoft Excel, create an investment cash-flow diagram that will have a present zero using…
A: Present worth of the investment is the value of the investment which has been discounted the cash…
Q: 3. Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022…
A:
Q: 8. Ignoring income tax, the accounting change should preferably be reported by the company in its…
A: As the question specified ignoring income taxes, the cumulative effect on retained earnings will be…
Q: Q.4.2 Which of the following users of accounting information, use the information to assess the…
A: Accounting is a process that starts by recording of financial transactions. It includes the…
Q: Porters Five forces model for businesses does not include... O Complimentary Products Potential New…
A: Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape…
Q: What is the net effect of the above errors in the 2021 net income? (If understated, put a negative…
A: The accrued expense are those expenses that are due but the payment of these expenses are not made…
Q: select all that applies) Group of answer choices a) will never make an investment with a risk-free…
A: risk loving person who are seeking to take additional risky order to earn higher returns as well as…
Q: 1. S1: A change from cash basis accounting to accrual basis accounting is an example of change in…
A: The question is related to the Change in Accounting Policy and Change in Accounting estmates.…
Q: Instructions: Give its Financial Statements, Preparation of Closing Entries & Posting to ledger,…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…
A: A bond is borrowing security issued by a company to raise funds from the market by making an…
Q: What is the number of shares outstanding in nearest millions for the mutual fund of total assets of…
A: NAV stands for Net Assets Value. Differences between total assets and total liabilities are called…
Q: Adjusting entries are sorted into two groups, accruals and deferrals. What is the classification…
A: As per the accrual accounting principle, each business transaction should be recorded in the period…
Q: INCOME STATEMENTS Net sales COGS (excl. depr.) Depreciation Other operating expenses EBIT Interest…
A: Debt to Asset is a leverage Ratio that compares a company's total liabilities (both short-term…
Q: Capital structure is irrelevant if: I) capital markets are efficient; II) each investor can…
A: Lesson - Since a firm's capital structure decision does not affect investors' cash flow…
Q: Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at the hotel is…
A: A journal entry is being utilized to record a commercial enterprise activity in the financial…
Q: Use the information from the Adjusted Trial Balance and Financial Statement templates provided in…
A: The income statement shows the net income or net loss calculated by deducting the expenses from the…
Q: ompany's net assets. P13,000 of the excess is attributed to an undervalued equipment with a…
A:
Q: How much is the cumulative effect of this change that should be reported in the income statement for…
A: The question is related to Change in Accounting Policy. Accounting Policy are the principles and…
Q: After working for years as a regional manager for a retail organization, Scott Parry opened his own…
A: Business Transaction- A business transaction is also known as a financial transaction because it is…
Q: Below are the Statement of Financial Position of Malibu Finance Inc for the year 2020. Statement of…
A: Formulas: Debt ratio = Total liabilities / Total assets Equity ratio = Total shareholders equity /…
Q: Questions 6 and 7 refer to the following information The following balance sheet is for X Company:…
A: As per Accounting Equation,Assets =Liabilities +Shareholder's Equity Total Equities =Total…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Diluted earnings per share (Diluted EPS) : Diluted EPS is the company's earnings per share if all…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Formula: Basic earnings per share = (Net income - Preferred dividend)/ No. of Ordinary shares…
Q: Determine the present equivalent value (PW) of the following cash flow when the annual interest rate…
A: Present Worth: The idea of present value asserts that a sum of money in the here and now is worth…
Q: riton Company provided the following information concerning a defined at the beginning of current…
A: In a company's accounting records, a journal entry is used to memorialize a commercial transaction.…
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of…
A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…
Q: A. Cotton serviced for P75,000, on account. She mistakenly recorded the promise to pay as 57,000 to…
A: In the given question, insurance premium of P 576,000 is paid on 1st August 2020. Insurance period…
Step by step
Solved in 2 steps
- Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.Investment in Trading Securities The following information relates to Sanders Companys investment in trading securities for 2019: Required: 1. Prepare journal entries to record the previous information for 2019. Use the effective interest method and round all amounts to the nearest dollar. Assume that Sanders prepares semiannual financial statement. 2. Show the items of income or loss from investment transactions that Sanders reports for each 2019 semiannual income statement. 3. Show how the investment items are reported on each of the 2019 semiannual balance sheets, assuming that management expects to dispose of all investments within one year of purchase.Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.
- Interest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a 12,000,60-day note. Required: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customers repayment on February 9, 2020, assuming: 1. Interest of 12% was in addition to the face value of the note. 2. The note was issued as a 12,000 non-interest-bearing note with a present value of 11,765. The implicit interest rate on the note receivable was 12%. Assume a 360-day year. (Round to the nearest dollar.)On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Spreadsheet from Trial Balance Heinz Companys post closing trial balance as of December 31, 2018, and the adjusted trial balance as of December 31, 2019, are shown here: A review of the accounting records reveals the following additional information: a. Bomb payable with a face value, book value, and market value of 14,000 were retired on June 30, 2019. b. Bonds payable with a face value of 8,000 were issued at 90.25 on August 1, 2019. They mature on August 1, 2024. The company uses the straight-line method to amortize the bond discount. c. The company sold a building that had an original cost of 8,000 and a book value of 4,800. The company received 2,200 in cash for the building and recorded a loss of 2,600. d. Equipment with a cost of 4,000 and a book value of 1,400 was exchanged for an acre of land valued at 2,700. No cash was exchanged. e. Long-term investments in bonds being held to maturity with a cost of 1,000 were sold for 800. f. Sixty-five shares of common stock were exchanged for a patent. The common stock was selling for 20 per share at the time of the exchange. Required: Prepare a spreadsheet to support a statement of cash flows for 2019.
- At December 31, 2020, the trading securities for Crane, Inc. are as follows. Security Cost Fair Value A $17,500 $16,100 B 12,600 13,900 C 23,100 19,100 $53,200 $49,100 (a) Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31Terra Cotta Company has the following data at December 31, 2020 for its securities: Security Cost Fair Value Available-for-sale $34,000 $39,000 Trading 46,000 42,000 Journalize the December 31 adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record available-for-sale securities) Dec. 31 (To record trading securities)At December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Security. Cost. Fair Value A $17,500 16,000 B 12,500 14,000 C 23,000 21,000 53,000 51,000 A. Prepare the adjusting entry at December 31, 2022 to report the securities at fair value. B- Show the statement presentation at December 31,2022, after adjustment to fair value. C- E. Kretsinger, a member of the board of directors, does not understand the reporting of the unreal- ized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves.
- Tamarisk Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amoortization cost $52,100 Fair Value 44,200 Expected credit losses 12,850 What is the amount of the credit loss that Tamarisk should report on this available-for-sale security at December 31, 2020? Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2020. Assume that the fair value of the available-for-sale security is $57,200 at December 31, 2020, instead of $44,200. What is the amount of the credit loss that Tamarisk should report at December 31, 2020? Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 2020.At December 31, 2020, the available-for-sale debt portfolio for Cheyenne Corp. is as follows. Securities Cost Fair Value Unrealized Gain(Loss) Good Co. Bonds $28,800 $26,600 $(2,200 ) Home Co. Bonds 31,700 33,700 2,000 Grand Inc. Debentures 36,700 37,800 1,100 97,200 98,100 900 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. CheyenneCorp. reported net income of $80,100 for 2020. Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit…At December 31, 2021, Blossom Company has an equity portfolio valued at $121000. Its cost was $106000. If the Securities Fair Value Adjustment has a debit balance of $6700, which of the following journal entries is required at December 31, 2021?