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Sav [38]
1 year ago
6

jerome, incorporated, paid $8,850 to make a debt investment in trading securities of tedesco, incorporated. on december 30, (wit

hin the same fiscal year), jerome sold some of these debt securities that had a cost of $6,500 for $7,000 cash. complete the necessary adjusting entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Business
1 answer:
Serjik [45]1 year ago
4 0

The adjusting entry for the sale of debt securities by Jerome Incorporated on December 30, is as follows:

<h3>Adjusting Journal:</h3>

December 31:

Debit Cash $7,000

Credit Investment $6,500

Credit Gain on Sale of Investment $500

  • To record the sale of debt investment (part) and the gain therefrom.

<h3>What is an adjusting entry?</h3>

An adjusting entry is the journal entry made at the end of the financial year to ensure compliance with the accrual concept and the matching principle of generally accepted accounting principles.

An adjusting entry does not include the initial investment transaction made by Jerome Incorporated.

<h3>Transaction Analysis:</h3>

Dec. 30:

Cash $7,000  Investment $6,500 Gain on Sale of Investment $500

Learn more about adjusting entries at brainly.com/question/13933471

#SPJ1

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faust18 [17]

Answer:

Yes, the spin off was successful.

With the major segments of fast food being sandwich chains, pizza chains, family restaurants, dinner houses, chicken chains, and more each Yum restaurant needed to be placed into their own niche. They also started using multi-branding and putting the brands in the same building. This allowed one location to draw in a more diverse crowd of consumers while offering them more variety and covering the other brands weak points.

Reason for their success.

PepsiCo, when spinning off these fast food chains, openly stated “restaurants weren't our schtick.” I.e the company presented themselves themselves to media that restaurants isn't focus. Before the spin off KFC, Pizza Hut, and Taco Bell often acted as their own entities and competed with each other resulting in lowered sales for all of the restaurants. With the spin off of Tricon the restaurants were unified with the sharing of many resources and using their collective clout, as one of the top five brands, to get better deals on ingredients all the restaurants share. Their concentrated focus allows them to be greatly effective in entering new markets such as Asia

7 0
3 years ago
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flo
iragen [17]

Answer:

Flows Added

Oct. 4: Proceeds from Sale of fixed asset $151,000

Oct. 4: Gain on sale of fixed asset <em> </em>$22,000

Flows Deducted

Mar. 12: Purchase of fixed asset $274,000

Explanation:

The Cash flow statement is prepared under the following headings :

  1. Cash flow from operating activities
  2. Cash flow from investing activities
  3. Cash flow from financing activities

Therefore form the transactions we need to establish what amount fall in which category.

Here is an extract of the Cash flow statement based on the given data

Cash flow from Operating Activities

<em>Adjustment to non-cash items </em>

Gain on sale of asset<em> </em>($151,000 - $129,000) <em>    </em>$22,000

Cash flow from Investing Activities

Purchase of Asset                                             ($274,000)

Proceeds from sale of Asset                              $151,000

Cash flow from Financing Activities

8 0
3 years ago
On December​1, Mountain and Meadow Tree Service prepaid $6,600 for six​ months' rent. Give the adjusting entry to record rent ex
DerKrebs [107]

Answer:

Mountain and Meadow Tree services prepaid rent $6,600 on December 1 for 6 months rent.

Note for asset and expense accounts when they increase you debit and when they reduce you credit.

The first entry

On December 1 : Debit Prepaid Rent account for $6,600

Narration: Prepaid rent for 6 months

Balance: $6,600

Since the rent is for 6 months, monthly payment will be= 6,600/6= $1,100

On December 31 post the following adjusting entries

December 31 : Debit Rent Expense $1,100

Narration: Rent for December

Balance: $1,100

December 31 : Credit Prepaid Rent $1,100

Narration: Rent for December

Balance: $5,500

6 0
3 years ago
The Plainfield Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .52 and a
SCORPION-xisa [38]

Answer:

$13286.84

Explanation:

Given that

Current ratio = 1.41

Current liabilities =2465

Firstly, we calculate for current assets.

Recall that,

Current ratio = current assets / current liabilities

That is,

1.41 = current assets / $2,465

Therefore,

Current assets = $2,465 × 1.41

Current assets = $3475.65

Following that

We find Net Income

Again, recall that

Profit margin = net income / Sales

Where

Profit margin = 0.09 or 9%

Sales = 10,675

0.09 = net income / $10,675

Net income = 0.09 × $10,675

Net income = 960.75

Next step is to find for return on equity

Recall that

ROE = net income / total equity

Where,

ROE was given as 0.14

We got net income as 960.75

Hence,

0.14 = 960.75 / total equity

Total equity = 960.75 / 0.14

Total equity = $6,862.5

Long term debt ratio = long term debt / (long term debt + total equity)

1 / 0.52 = 1 + long term debt / (total equity / long term debt)

0.923 = (total equity / long term debt)

$6,862.5 / long term debt = 0.923

long term debt = 7,434.99

Recall that

Total debt = Current liabilities + long term debt

Thus,

Total debt = $2,465 + $7,434.99

Total debt = 9,899.99

Total asset is given as: total debt + total equity,

Thus,

Total assets = $9,899.99 + $6,862.5

Total assets = 16,762.494

Finally,

Recall that,

Net fixed assets = total assets - current assets

Therefore,

Net fixed assets = 16,762.494 - $3475.65

Net fixed assets = $13286.84

3 0
3 years ago
In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on:
Scilla [17]

In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on: labor demand alone.

<h3>What is wages model?</h3>

Wages model is a model that stated that wages which a worker or an employee earn is based on the workforce or the amount of money available to pay the workers.

In a situation were will have wage that is above the market-clearing wage this tend to mean that the level of employment will depends on  labor demand only.

Therefore  the level of employment depends on: labor demand alone.

Learn more about wages model here:brainly.com/question/1622389

#SPJ12

8 0
2 years ago
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