Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale. After one year, the quoted market price of the securities drops the total investment value to $8,000. In the following year, the quoted market price of the securities increases the total investment value to $11,000, and Plasma then sells the equity securities. write down the related entries.
Q: In 2022, Dunder Mifflin Inc. had one temporary difference of $398 that resulted in a deferred tax…
A: Temporary difference means the difference between Accounting Income and taxable income which is…
Q: Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following…
A: The Overhead Budget is defined even as expenditure ready to forecast or show all of the contingent…
Q: Accounting Explain five actions the audit firm would take as part of the client screening process,…
A: An audit is an inspection or inspection of various ledgers by a certified accountant, followed by a…
Q: NOPAT 8250000 EBITDA 17725000 Net Income 5050000 Capital Expenditures 6820000 After tax capital…
A: Net profit before tax: = Net income ÷ (1 -Tax rate)
Q: Ortega Interiors provides design services to residential and commercial clients. The residential…
A: Net income / (loss) is the amount of money earned or incurred after deducting the outlays from the…
Q: Bettlejuice Company manufactures and sells one product for $34 per unit. The company maintains no…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: The Human Resources department at Community Hospital instituted a new performance evaluation system…
A: Variance is actually the deviation which a company calculates when the actual results of the…
Q: Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature…
A: ANSWER Cassie, the number of production runs per year of the miniature oak files that would…
Q: Case study no. 1: A mumber of persons and/or companies decide to se cubscribed capital. Subsequently…
A: Subscribed capital refers to the sum value of shares that the investor intends to buy once they are…
Q: Define in your own words the term diversity.
A: Accounting diversity refers to variances in the recording and use of financial data; American firms…
Q: If a business had sales of $3,894,000 anda margin of safety of 20%, the break-even point in sales…
A: Formula used for calculating Break even point in sales dollars: = Business sales value x ( 100 % -…
Q: Kindly provide answers for ONLY 5.2.1 5.2.2 5.3.3
A: 1. Gross Profit Margin Ratio:- It is the excess of sales over cost of goods sold. It is calculated…
Q: Comment on the following items relative to tax planning strategies of a fiduciary entity. To reduce…
A: The process of examining a financial position or plan to ensure that all components work together to…
Q: You have recently been named the chief accountant for Stop Smog Now (SSN), a not-for-profit…
A: Restricted contribution is that contribution which can only be used for some restricted purposes,…
Q: Question Content Area Complete this production cost report: Enter all amount as positive values. If…
A: Production Cost Report Beginning Inventory 21,000…
Q: Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale.…
A: Available for Sale (AFS) securities are those securities equity or debt securities that are…
Q: Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following…
A: The Overhead Budget is defined even as expenditure ready to forecast or show all of the contingent…
Q: 1. Under Unit of Production Method of Calculating Depreciation, if there is no production in any…
A: Unit of Production Method This method of charging depreciation on the asset is based on the units…
Q: Weighted Average Cost of Capital Rust, Inc. plans to finance its expansion by raising the needed…
A: The weighted average cost of capital indicates the overall cost of capital from all the sources. It…
Q: Adams Company paid $92.000 to purchase a machine on January 1, Year 1. During Year 3, a…
A: An avoidable cost is one that will not be spent if a specific activity is not carried out. Unlike…
Q: Data table Static budget variable overhead 7,800 Static budget fixed overhead %24 3,900 Static…
A: Variance analysis involves computing of the deviations by comparing the actual and estimate data and…
Q: Explain in your own words the key objective of IAS36 – Impairment of assets.
A: An impaired asset is one with a market worth less than the value shown on the balance sheet. When an…
Q: 24. LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equiva- lent units for…
A: Given that, During October : cost of ; Direct materials = $158,688 Overhead = $85,200 Conversion =…
Q: Company provided the balance sheet below: Cash 225 Accounts payable 150 Accounts receivable…
A: The acid test ratio is calculated as quick assets divided by current liabilities.
Q: E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: ASSIMILATION You and your two friends have put up a small editorial service company. As the only…
A: Trial balance means the statement prepared from ledger account where all debit and credit balance…
Q: The standard direct labor rates in effect for the current fiscal year and the standard hours allowed…
A:
Q: A certain building has a salvage value of P 1 million after 50 years. Annual depreciation is Php 2…
A:
Q: 6. S1. The high-low method is generally less accurate than the least-squares regression method for…
A: The given question is regarding the high low method vs least squares regression method. 1) High low…
Q: True or false ________ 13. The proceeds from the sale of a fixed assets would be credited to sales…
A: Let's understand some basics Fixed assets are assets which are purchased for long-term use and are…
Q: 43 The trial balance for Greenway Corporation appears as follows Greenway Corporation Trial Balance…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. These…
Q: Arthur is deciding to make end-of-year deposits of P1,200 per year. What rate of return would enable…
A: GIVEN Arthur is deciding to make end-of-year deposits of P1,200 per year. What rate of return…
Q: Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is…
A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…
Q: REQUIRED Based on the cash book and bank statement of Joe Wilson ltd 1. Prepare an adjusted…
A:
Q: Expected sales 10,000 units at $8 each Variable costs $5 per unit Fixed Costs $21,000 Assume…
A: Unit Contribution margin = Selling price - Unit Variable cost = $8 - $5 = $3
Q: An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000…
A: The total amount of money generated by an individual or firm in a certain period of time, minus…
Q: The debtors ageing analysis for HARUNA limited is as shown below HARUNA LIMITED DEBTORS AGE…
A: "Since you have posted a question with multiple sub-parts, we will solve the first 3-sub parts for…
Q: Use the information below provided by Angel Baby Angel Company Sales 8,250,000.00 Operating costs…
A: Formula: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC…
Q: The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated…
A: The break-even formula is calculated by dividing the total fixed costs associated with production by…
Q: .) Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income…
A: The net income of the company can be calculated by deducting all the expenses and costs from revenue…
Q: Determine the following as a result of your audit: 3. How much is the amount of liability for income…
A: Here to discuss about the details of the trade payable and other payable which are related with this…
Q: What is the capital components. breifly define.
A: Introduction: The Weighted Average Cost of Capital (WACC) of a company shows its overall cost of…
Q: Problem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2…
A: Here discuss about the details of adoption credit and IRS guidelines which are related with the…
Q: Net income for 2020 was P1.825.600.in 2021. it decreased by 53%. Still using the 2020 net income as…
A: Net income means the profit earned by the business after deducting all the expenses related with the…
Q: The firm's average accounts receivable balance is P2.5 million, and they are financed by a bank loan…
A: In the given question, the annual savings in interest cost will be compared with the annual cost of…
Q: Solving hor Stockhalders toquity Amaunts Assume that the foitowing amounts are known for Colten…
A: The dividend is declared and paid to the shareholders from the retained earnings of the business.
Q: Jerilu Markets has a beta of 1.05. The risk-free rate of return is 2.64 percent and the market rate…
A: Introduction:- Risk premium is the excess return over the guaranteed rate of return. It is more…
Q: 28. SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and…
A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…
Q: The balance sheets for a company and additional information are provided below. A COMPANY Balance…
A: Profitability ratio are a class of financial metrics that are used to assess a business's ability to…
Q: The income tax rate is 30%. 1. Basic earnings per share Amaze Company reported the following…
A: The following formulas are used:- EPS=Net Income-Preference DividedendWeighted Average shares…
Step by step
Solved in 2 steps with 2 images
- Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale. After one year, the quoted market price of the securities drops the total investment value to $8,000. In the following year, the quoted market price of the securities increases the total investment value to $11,000, and Plasma then sells the equity securities. write down the related entries.During its first year of operations, Giovani Foods purchased available-for-sale securities for $37,500. Giovani Foods expects it will sell the securities within the next year. At the end of the year, these securities had a market value of $33,900. Explain how the decrease in fair value of the securities would be reported on Giovani Foods’ financial statements for the year?ABC Corporation has decided to sell ₱1000 bonds which will pay semiannual dividends of ₱20 (2% per period) and will mature in 5 years. The bonds are sold at ₱830, but after brokers' fees and other expenses the company ends up receiving ₱760. What is the company's cost of the capital raised through the sale of these bonds?
- Eight months ago, the Zeus Fund entered into a short position in a one - year forward contract on 1,250 shares of Cerner Corporation stock at a forward contract price of $94 per share. Today, the price of Cerner stock is $92.50 per share and the interest rate for continuous compounding is 1 % . Cerner stock does not pay dividends. If the Zeus Fund wanted to exit the contract today, how much should it be willing to pay, or how much should it expect to receive, from its counterparty?Jaja Plc has two investments. One, an investment in listed shares, is available for sale as a financial asset. The current market value is £405,000 but the shares were bought for £675,000. The other is an investment in a three year bond with an amortised cost of £450,000 with a stated and effective interest rate of 7% (current market rates are 10%). After two years Jaja Plc is not expecting to receive the last year’s interest and expects to receive only 2/3 of the principal. Required : What is impairment? What impairment should be recorded in the accounts of Jaja Plc for the listed shares and the three year bond?Lexington Co. has the following securities outstanding on December 31, 2020 (its first year of operations). Cost Fair Value Greenspan Corp. stock $20,000 $19,000 Summerset Company stock 9,500 8,800 Tinkers Company stock 20,000 20,600 $49,500 $48,400 During 2021, Summerset Company stock was sold for $9,200, the difference between the $9,200 and the “fair value” of $8,800 being recorded as a “Gain on Sale of Investments.” The market price of the stock on December 31, 2021, was Greenspan Corp. stock $19,900; Tinkers Company stock $20,500. Instructions a. What justification is there for valuing equity securities at fair value and reporting the unrealized gain or loss as part of net income? b. How should Lexington Co. report this information in its financial statements at December 31, 2020? Explain. c. Did Lexington Co. properly account for the sale of the Summerset Company stock? Explain. d. Are there any additional entries necessary for…
- Eight months ago, the Zeus Fund entered into a short position in a one-year forward contract on 1,250 shares of Cerner Corporation stock at a forward contract price of $94 per share. Today, the price of Cerner stock is $92.50 per share and the interest rate for continuous compounding is 1%. Cerner stock does not pay dividends. What is today’s market value of the forward contract? If the Zeus Fund wanted to exit the contract today, how much should it be willing to pay, or how much should it expect to receive, from its counterparty?ABC Corporation has decided to sell ₱1000 bonds which will pay semiannualdividends of ₱20 (2% per period) and will mature in 5 years. The bonds are sold at₱830, but after brokers' fees and other expenses the company ends up receiving ₱760.Is the bond a good buy for an investor who expects a 9% return on his investments?Mark Motel's debt has a face value of $40 million, a coupon rate of 14% (paid semiannually), and expires in 12 years (at t = 12 . The current annual yield-to-maturity (stated) for all bonds of the company is 15%. Mark wishes to conserve cash for the next few years. To do this, Mark decides to issue new equity and use the proceeds to purchase the existing debt at the market price. The current stock price of Mark is $60 and there are 2 million shares outstanding. 1. How many shares should Mark issue to purchase the existing debt? Assume the decision to purchase the bond does not change the stock price. Instead, the company decides to issue a zero-coupon bond that matures at year 5, and use the proceeds to purchase the existing debt at the market price. 2. What is the face value of the zero-coupon bond that Mark needs to issue?
- Seven years ago, Goodwynn & Wolf Incorporated (G&W) sold a 20-yearbond issue with a 14% annual coupon rate and a 9% call premium. Today,G&W called the bonds. The bonds originally were sold at their face value of$1,000. Compute the realized rate of return for investors who purchased thebonds when they were issued and who surrender them today in exchangefor the call price.Jupiter Bank decides to invest in trading securities in order to take advantage of short-term gains. The bank purchased the following securities for the year 2020. Jan. 15, 2020 Purchased 1,000 shares of Corbin Company common stock for $89 per share. May 23, 2020 Purchased 1500 shares of Petro Company common stock for $75 per share. At the end of 2020, Corbin Company's common stock was trading on the market at $93 per share, and Petro's common stock had a market price of $70 per share. Required: 1. Prepare journal entries to record the preceding information. 2. What is the unrealized holding gain or loss and where is it reported on the 2020 financial statements? Enter your answer as positive amount.The investment manager for Draxler Co. pays $988,472 to purchase a $1,000,000 face-value bond maturing in five years and paying interest semiannually at an annual rate of 2.75 percent. The annual market rate for comparable bonds at the time of issuance is 3.00 percent. With two years remaining, the manager determines that the bond will pay the full $1,000,000 at maturity but will pay $3,000 less in interest than planned every six months for the remainder of the bond’s life. The relevant present value factors for $1 and a $1 ordinary annuity are 0.9422 and 3.8544, respectively. If the bond’s current fair value with two years remaining is $994,800 and the amortized cost of the bond is $995,182, the current expected credit loss, assuming that the bond is classified as held-to-maturity, is closest to: A. $4,835 B. $6,710 C. $11,165 D. $11,545
