In the scor model, purchasing is represented by

Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.

Masteriza [31]

Answer:

a. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities.

Company B notes $82,300
Company C bonds $603,800
Company X bonds $120,000
Company Z notes $276,000

b. (same as c.)Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.

Dr Company B notes 4,800
Cr Unrealized gain on Company B notes 4,800 (= $82,300 - $77,500)

Dr Unrealized loss on Company C bonds 38,340 (= $603,800 - $642,140)
Cr Company C bonds 38,340

Dr Unrealized loss on Company X bonds 2,100 (= $120,000 - $122,100)
Cr Company X bonds 2,100

Dr Company Z notes 8,100
Cr Unrealized gain on Company Z notes 8,100 (= $276,000 - $267,300)

Explanation:

beginning of the year cost fair value

Company A bonds $534,100 $492,000

Company B notes $159,140 $155,000

Company C bonds $662,400 $642,140

since available for sale assets must be recorded at fair value, we must assume that the company prepared the adjusting entries at the end of the previous year (unrealized gains or losses):

Jan. 29 Sold one-half of the Company B notes for $78,820.

Dr Cash 78,820

Cr Company B notes 77,500

Cr Gain on sale of Company B notes 1,320

July 6 Purchased bonds of Company X for $122,100.

Dr Company X bonds AFS 122,100

Cr Cash 122,100

Nov. 13 Purchased notes of Company Z for $267,300.

Dr Company Z bonds AFS 267,300

Cr Cash 267,300

Dec. 9 Sold all of the bonds of Company A for $524,800.

Dr Cash 524,800

Cr Company A notes 492,000

Cr Gain on sale of Company B notes 32,800

3 0

3 years ago

You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dolla

never [62]

Answer:

$41,667

Explanation:

First and foremost, in order to profit from the arbitrage opportunity, we need to first of all convert dollars to euro using the exchange rate below

$1.60 = €1.00

$1,000,000 in euros= $1,000,000*€1.00/$1.60=€625,000

Next we convert the euros to pounds using the rate quoted by the bank below:

£1.00 = €1.20

€625,000 in pounds=€625,000*£1.00/€1.20=£ 520,833.33

Lastly, we convert the pounds sterling back to dollars using the below exchange rate

$2.00 = £1.00

£ 520,833.33 in dollars=£ 520,833.33*$2/£1.00=$ 1,041,666.67

Profit from the arbitrage=$ 1,041,666.67 -$1,000,000.00

Profit from the arbitrage=$41,667(rounded to a whole dollar amount)

8 0

3 years ago

A team leader is responsible for: a. His or her team's performance. b. Closely monitoring long-term business, economic, and soci

Deffense [45]

Answer: A. His or her team's performance

Explanation: Usually, when being a team leader, a person is assigned to do some kind of task (depending on a company) along with his other colleagues. He is there to elaborate about the topic and make a decision on how it's going to be presented. Teammates are usually the ones that make suggestions about certain things that include the project. He is the one that represents the whole team and it all ''falls'' on his back if it doesn't go right.

5 0

4 years ago

An adjustment for Prepaid Rent would indicate the amount Question 10 options: expired. on hand. originally paid. of the trial ba

juin [17]

It <span>would indicate the amount Expired.

Prepaid rent is a type of rent expense that you paid up-front for the future use.
In accounting, adjustment is made towards prepaid rent at the end of the year in order to find the true value ofremaining prepaid rent.
This value is being calculated by finding the fees of the rent per month and reducing it with the total by the end of the year</span>

7 0

4 years ago

On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 5 million of its $1 par common s

o-na [289]

Answer:

1.$45 million

2. No journal entry required

3. Dr Compensation expense $15 million

Cr paid in capital - restricted stock $15 million

4. Dr Compensation expense $15 million

Cr Paid in capital - restricted stock $15 million

5. Dr Compensation expense $15 million

Cr Paid in capital - restricted stock $15 million

6. Dr Paid in capital - restricted stock $45 million

Cr Common stock $5 million

Cr Paid in capital - excess of par $40 million

Explanation:

1. Calculation to Determine the total compensation cost pertaining to the RSUs.

Total compensation cost pertaining to the RSUs

=$9.00 fair value per share × 5 million shares represented by RSUs granted

Total compensation cost pertaining to the RSUs=$45 million

Therefore the total compensation cost pertaining to the RSUs will be $45 million

2. Preparation of the appropriate journal entry to record the award of RSL's on January 1, 2021.

No Journal entry required

3. Preparation of the appropriate journal entry to record compensation expense on December 31, 2021.

Dr Compensation expense $15 million

($45 million/3 years )

Cr Paid in capital - restricted stock $15 million

4. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022.

Dr Compensation expense $15 million

Cr Paid in capital - restricted stock $15 million

($45 million/3 years )

5. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.

Dr Compensation expense $15 million

Cr Paid in capital - restricted stock $15 million

($45 million/3 years )

6. Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

Dr Paid in capital - restricted stock $45 million

Cr Common stock $5 million

Cr Paid in capital - excess of par $40 million

($45 million-$5 million)

6 0

3 years ago