EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows. Security A B C Total Cost $18,100 12,500 23,000 $53,600 Fair Value $16,000 14,800 18,000 $48,800 Instructions a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the balance sheet and income statement presentation at December 31, 2022, after adjustment to fair value.
Q: The physical count of inventory of a retailer was lower than shown by the perpetual records. Which…
A: Perpetual inventory system shows that the inventory would be counted by the company on a regular…
Q: hat will be your first step to generating a busine
A: Budget is very important in the business and preparing the budget is the important step in the…
Q: (a) Compute the total materials variance and the price and quantity variances. Total materials…
A: We often do variance analysis in accounting to determine the deviation from the standard situation.…
Q: Classic Company and its subsidiaries own the following properties that are accounted for in…
A: Investment Property: An investment is a piece of real estate bought to make money back on the…
Q: Daniel is the sole shareholder in Helio, Inc., a calendar-year corporation. After operating as a C…
A: Introduction: An individual, company, or organisation that owns stock in a company is a shareholder.…
Q: Machinery purchased for $65,400 by Bonita Co. in 2021 was originally estimated to have a life of 8…
A: A technique of calculating depreciation and amortization, the process of expensing an item over a…
Q: Periodic Payment $250.00 Payment Interval 1 year Term 4 years Interest Rate . 10% Conversion Period…
A: Ordinary annuity is constant uniform payments that are paid at the end of period and present value…
Q: Current Attempt in Progress Sweet Company manufactures desks. Most of the company's desks are…
A: As per Generally accepted accounting principles closing inventory should be valued at a lower of the…
Q: Aerospace Electronics reports $570,000 in credit sales for 2018 and $635,500 in 2019. They have a…
A: The creditor is required to write off the amount of money as a bad debt when a debtor misses a…
Q: Millicent, a merchandiser of fancy tea party hats, has the following activity for the month:…
A: Ending inventory is the amount of inventory that an entity has, at the end of the period. It is…
Q: Entries for Issuing No-Par Stock On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash…
A: Journal Entries A journal is a book in which all of a company's transactions are…
Q: Is The Company Under Armour a merchandiser or a manufacturer? Please answer it in depth.
A: The company Under Armour is primarily a manufacturer. Under Armour designs, develops, manufactures,…
Q: wy Company issued $500,000, 8% bonds on January 1, Year 1. The bonds pay interest on June 30 and…
A: Bond is an financial instrument which pays a regular interest to the bond holders. Convertible bonds…
Q: Assume two divisions of a manufacturing company had the following sales, income from operations, and…
A: (1) & (2) The ROI of Division A is 22.5%. The ROI of Division B is 24%.
Q: 7. Given the following information, decompose the payor's inpatient costs variance. Determine how…
A: Variance is difference between actual and budget. Calculation of variance due to price = (budgeted-…
Q: Consider a project that will produce sales of $55,150 and have costs of $31,100. Taxes will be…
A: Operating cash flow means the amount earned by the entity from its daily operations. It does not…
Q: Sheridan Furniture Company started construction of a combination office and warehouse building for…
A: Introduction: To capitalize interest cost incurred during construction period, avoidable interest…
Q: The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the…
A: Cash budget is prepared at the beginning of the period. It involves the receipt of cash and payment…
Q: A company adopted dollar-value LIFO (DVL) as of January 1, 2024, when it had an inventory of…
A: A dollar-value technique is used for the pricing of LIFO inventory. Instead of using the quantity of…
Q: 5. Number of days' sales in receivables fill in the blank 5 days 6. Inventory turnover fill…
A: 5. Number of days' sales in receivables = (Trade recievables / Net credit sales ) x 365 days =…
Q: Required information [The following information applies to the questions displayed below] Trey…
A: The ending inventory comprises the units that are finished but not sold yet. The inventory can be…
Q: Blue Company is constructing a building. Construction began on February 1 and was completed on…
A: The expense of borrowing to acquire a long-term asset is known as capitalized interest. Capitalized…
Q: Crane Company purchased merchandise inventory with an invoice price of $13100 and creat of the goods…
A: The discount period is the last time to make payment with discounts allowed. The payment made…
Q: 1) A company is considering two projects. The projects have the following expected cash flows: 1 2 3…
A: When a company has alternative projects, it has to evaluate which project is more beneficial to the…
Q: governmental funds in fund accounting is a(n): a. Economic Resource Measurement Focus. b.…
A: For government to achieve faith and accountability it is important to provide the data which are…
Q: 11. Debt to Equity Ratio A company has $100,000 on a line of credit and a $500,000 mortgage on it's…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: The Old Towne Manufacturing Company produces the following three products: Saws Knives…
A: Break even point: It is the point at which total sales revenue is equal to total cost. Following is…
Q: 2. Rye Corporation is owned 55% (55 shares) by Roger, 30% (30 shares) by Yolanda and 15% ( 15…
A: As per US taxation law and code of IRS, in case of redumption of stock of shareholder, any gain…
Q: Question 32 Naruto and Sakura are partners with profit and loss ratio of 60:40 and capital balances…
A: The partnership is such form of business where the partner share their capital first as to start the…
Q: Conversion cost is 250,000; Prime cost is 200,000; OH rate is 150% of Direct labor cost; Indirect…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The prime…
Q: Martin Services Company provides its employees vacation benefits and a defined contribution pension…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The expense…
Q: What are the major objectives of financial reporting? Who uses financial reporting?
A: ANSWERS. The main goals of financial reporting are to give users of the information information…
Q: Answer the following questions: Under a 2017 divorce agreement, Joan is required to pay her…
A: Alimony payment refers to the money given by the spouse to another in the event of a divorce for…
Q: uilding high quality executive flats in city centres. On 1 March 20X6 it sells a plot of building…
A: Financial Statement - Financial statements are documents that describe a company's operations and…
Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…
A: Economic value added is the measure of the financial performance of any company. It indicates the…
Q: Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables.…
A: The bad debt expense is estimated on the basis of the percentage of uncollectible for the current…
Q: Everytime I input these answers they're being marked incorrect:
A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…
Q: View Policies Current Attempt in Progress Whispering Inc. uses LIFO inventory costing. At January 1,…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: 3. Preparing simple balance sheets Renata is the owner of an orange factory. The following…
A: BALANCE SHEETS Balance sheet is one of the Important Financial Statement of the Company.…
Q: For the past several years, Steffy Lopez has operated a part-time consulting business from his home.…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: What was L standard direct labor rate?
A: Actual direct labour rate = Total Payroll cost / actual direct labour hours = 152 / 16 = $ 9.5
Q: . Identifying assets, liabilities and capital. Here is a list of assets and liabilities and…
A: Lets understand the basics. Financial statement is divided into three major portions which are, (1)…
Q: If you discover a client has not complied with the tax laws, or made an error in or omission from a…
A: Tax return is the return which is filed by the tax practitioner on behalf of the client which…
Q: Current Attempt in Progress In its first year of operations, Riverbed Corp. purchased…
A: Journal entry is the primary step to record the transaction in the books of accounts. The increase…
Q: The most appropriate reason for an increase in depreciation expense is that a. Depreciation for…
A: Introduction: - Depreciation is a non-cash expense. Depreciation is charged on fixed asset over a…
Q: Bank failure in Ghana. Can Financial Ratios predict? (Unibank and Capital bank) You are to write a…
A: Introduction The banking industry plays a vital role in the economic stability and development of a…
Q: Required: 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts…
A: Requirement:-1 Calculation of the balance of the allowance for doubtful accounts using the aging of…
Q: Moosier Inc. has been in operation for 3 years and uses the FIFO method of pricing inventory. During…
A: FIFO and Weighted average method is the inventory valuation method which uses the different approach…
Q: On July 1, Matrix Stores Inc. is considering leasing a building and buying the necessary equipment…
A: A business has to consider various alternatives and choose the best course of action from these…
Q: 1.3 REQUIRED Use the information provided below to calculate the following variances. In each case…
A: Material Quantity Variance :— It is the difference between standard material cost and actual…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
- EH.7 (LO 3), AP Writing At December 31, 2022, available-for-sale debt securities for Gwynn, Inc. are as follows. The securities are considered to be a long-term investment. Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 Fair Value $16,000 14,800 18,000 $48,800 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. Pam Jenks, a member of the board of directors, does not understand the reporting of the unrealized gains or losses on trading debt securities and available-for-sale debt securities. Write a letter to Ms. Jenks explaining the reporting and the purposes it serves.At December 31, 2022, the trading debt securities for Sheridan, Inc. are as follows. Security A (a) B C Cost $17,800 12,000 Dec. 31 22,900 $52,700 Fair Value $16,300 13,600 19,400 $49,300 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (List all debit entries before credit er Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No- for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit CreditPrepare adjusting entry to record fair value, and indicate statement presentation. E16.11 (LO 3), AP Financial Statement Writing 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. Fair Value $16,000 14,000 21,000 $51,000 Security A B с Cost $17,500 12,500 23,000 $53,000 Instructions 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.
- Prepare adjusting entry using fair value. BEH.4 (LO 3), AP Cost and fair value data for the trading debt securities of Lecler Company at December 31, 2022, are $62,000 and $59,600, respectively. Prepare the adjusting entry to record the securities at fair value. Indicate statement presentation using fair value.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.At December 31, 2020, the available-for-sale debt securities for Larkspur, Inc. are as follows. Security Cost Fair Value X $28,600 $24,960 Y 13,000 13,520 23,920 18,720 $65,520 $57,200 (a) 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 entry.) Date Account Titles and Explanation Dec. 31 N
- Problem 6 - on January 1, 2020, Rosal Company issued a 3-year 4,000 convertible bonds at face value of P1,000 per bond. Interest is to be paid annually in arrears at the stated coupon rate of 6%. Each bond is convertible, at the holder's option, into 200 P2 par value ordinary shares at any time up to maturity. On that date of issuance, the prevailing market interest rate for similar debt without the conversion privilege was 9%, on the same date, the market price of one ordinary share was P3. The bonds were converted on December 31, 2021. The following present value factors are obtained from the present value tables 6% 9% Present value of 1 for 3 periods 0.83962 0.77218 Present value of an ordinary annuity of 1 for 3 periods 2.67301 Present value of an annuity due of 1 for 3 periods 21. The liability component of the convertible debt is a. P4,000,000 P3,730,242 2.53130 2.83339 2.75911 b. P3,696,232 c. P1,600,00O d. 22. The equity component of the convertible debt is a. P303,768 b.…E16.11 (LO 3), AP On December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be long-term investments. Security A B C Cost $17,500 12,500 23,000 $53,000 Fair Value $16,000 14,000 21,000 $51,000 Instructions Prepare the adjusting entry on December 31, 2022, to report the securities at fair value. Show the statement presentation on December 31, 2022, after adjustment to fair value. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unrealized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves. Prepare to adjust entries for fair value, and indicate statement presentation for two classes of securities.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. 31
- The following information is available for Tamarisk Corporation's available-for-sale debt securities at December 31, 2020. Security Cost Fair Value X $40,120 $35,400 28,320 37,760 $68,440 $73,160 Prepare the adjusting entry to record the securities at fair value at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Debit CreditEntries for Available-for-Sale Securities) Assume the same information as in E16.3 except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2025 $320,000 2026 $309,000 2027 $308,000 2028 $310,000 2029 $300,000 Instructions a. Prepare the journal entry at the date of the bond purchase. b. Prepare the journal entries to record the interest revenue and recognition of fair value for 2025. c. Prepare the journal entry to record the recognition of fair value for 2026. E16.3 Carow Corporation purchased on January 1, 2025, as a held-to-maturity investment, $60,000 of the 8%, 5-year bonds of Harrison, Inc. for $65,118, which provides a 6% return. The bonds pay interest semiannually. Prepare Carow’s journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective-interest amortization is used.During the course of your examination of the financial statements of Sunland Corporation for the year ended December 31, 2025, you found a new account, "Investments." Your examination revealed that during 2025, Sunland began a program of investments, and all investment-related transactions were entered into this account. Your analysis of this account for 2025 follows: Date-2025 Feb. 14 July 26 Sept. 28 Apr. Oct. 28 30 Sunland Corporation Analysis of Investments Account For the Year Ended December 31, 2025 (a) Blossom Company Common Stock Purchased 3,900 shares @ $66 per share. Received 390 shares of Blossom Company common stock as a stock dividend. (Memorandum entry in general ledger.) Sold the 390 shares of Blossom Company common stock received July 26 @ $70 per share. (b) Daniel Inc. Common Stock Purchased 18,100 shares @ $42 per share. Received dividend of $1 per share. Debit $257,400 $760,200 Credit $27,300 $18,100