Answer:
Investment revenue = $52,000
Explanation:
Since Puff uses the equity method, the original journal entry to record the purchase of 40% of the shares should have been:
Dr Investment in Straw 400,000
Cr Cash 400,000
After one year, Straw earned $150,000 in net income, but it also had equipment with a fair market value higher than carrying value also depreciable by $100,000. So the net income must be adjusted = $150,000 - ($100,000 x 20%) = $130,000. The journal entry to record the adjusted income should be ($130,000 x 40%):
Dr Investment in Straw 52,000
Cr Investment revenue 52,000
Answer:
456
Explanation:
Taking the number of pages Chandra reads as x; we formulate an equation:
In the equation below, 30 represents time taken by Chandra, 45 represents time taken by Bob and 760 is the number of pages in the novel.
Solving for x:
30x = 45(760-x) ;
30x = 34,200 - 45x
30x + 45x = 34,200
75x = 34,200
x = 34,200/ 75
x= 456
Therefore Chandra will need to read up to the 456 page.
Explanation:
The journal entry is shown below;
Short term investment A/c Dr $156,000
To Cash $156,000
(Being the cash is paid to purchase the short term investment)
For recording this transaction we debited the short term investment and credited the cash as cash it is outflow and at the same time it increases the asset so it would be debited
