Answer:
Bawl with ABC bonds
The unrealized Gain/Loss reported in OCI of the 2023 Comprehensive Income statement is:
A Loss of $5,000
Explanation:
a) Data and Calculations:
Cost MV Unrealized Profit or (Loss)
December 31, 2021 $100,000 $ 91,000 $9,000 (Loss)
December 31, 2022 100,000 111,000 20,000
December 31, 2023 100,000 106,000 5,000 (Loss)
Available-for-sale Investment
Debit Credit
Dec 31 100,000
Loss 9,000
Dec 31 91,000
Profit 20,000
Dec 31 111,000
Loss 5,000
Dec 31 106,000
The Available-for-sale Investment will show a loss of $5,000 in the Other Comprehensive Income of the 2023 Comprehensive Income Statement based on the yearly adjustments to the account with losses and profits.
Answer:
The amount of bad debt exp is 7000
Explanation:
Allowance for bad debt exp has a credit balance of 7500 before adjusting entry
Now the management wants to estimate the uncollectible accounts at 14500
So we have to increase the balance of the allowance account from 7500 to 14500
Like 14500-7500=7000
So we need to record the entry by 7000 to increase the amount of the allowance to 14500
The entry
Bad debt exp Dr. 7000
Allowance for doubtful accounts Cr 7000
Now the bad debt exp will be reported in the income statement by 7000
Answer:
Please see answers below.
Explanation:
A. Three important Items to double check before submitting a loan application to underwriting.
• Completeness of data : One has to be sure that all important details are captured hence none is left out. It means that there are no missing information on the application.
• Calculations performed accurately: This means that calculations such as borrower's income, qualifying ratios are calculated accurately and also double checked for the purpose of the loan underwriting.
• Documentations required by the loan programme. All Documentations required by the loan programme must be double checked before submitting a loan application to underwriting.
B. List at least two things you would be sure to tell a borrower in preparation for closing
• I will seek clarity in terms of the money borrower would be bringing to the closing table.
• The date,time,venue of closing are essential for the closing hence will be communicated to the borrower. Also, there are no right or wrong answers that may be asked or given by the borrower during the closing.
C. List at least three calculations that are typically used during the course of mortgage loan transaction.
• Income calculation
• Front end and back end ratio (DTI ratio)
• Monthly payment.
Answer:
$432,000 Setting up equipment ⇒ based on setup hours
$1,440,000 Other overhead ⇒ based on oven hours
product units produced setup hours oven hours
Fudge 8,000 6,400 1,600
Cookies 445,000 1,600 8,000
1) Activity rate:
- a) setup hours = total setup costs / total setup hours = $432,000 / 8,000 hours = $54 per setup hour
- b) oven hours = total other overhead costs / total oven hours = $1,440,000 / 9,600 hours = $150 per oven hour
2) total overhead assigned to fudge = (6,400 setup hours x $54 per setup hour) + (1,600 oven hours x $150 per oven hour) = $345,600 + $240,000 = $585,600
Answer:
C) variable costs of $72,000 and $25,000 of fixed costs
Explanation:
To determine the flexible budget we must first calculate the variable costs of producing 8,000 units:
direct labor per unit = $40,000 / 5,000 units = $8 per unit
electric power per unit = $5,000 / 5,000 units = $1 per unit
total variable cost per unit = $8 + $1 = $9
Total variable costs for 8,000 units = 8,000 units x $9 per unit = $72,000
Total fixed costs = $25,000
