1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sveticcg [70]
3 years ago
6

On August 1, ABC Company sold its investment in Teal Company for $12,400. On the previous balance sheet, the investment had a fa

ir value of $11,400. The journal entry to record the sale will include a
Business
1 answer:
VladimirAG [237]3 years ago
5 0

Answer:

The journal entry to record the sale will include a,

<em>Cash $12,400 (debit)</em>

<em>Profit and Loss $1,000 (credit)</em>

<em>Investment in Teal Company $11,400 (credit)</em>

Explanation:

The Investment is carried in the the Financial statement at its Fair Value of $11,400, and this needs to be eliminated following the sale.

Recognize the cash proceeds following the sale of investment of $12,400.

Lastly any amount paid in excess of the Fair Value of the Investment must be recognized as profit or as loss (if fair value exceeds the cash proceeds)

You might be interested in
You want to show the stock price of a company over the last 6 months. What type of chart would be best for this purpose?
velikii [3]
C. Line

Because the stock prices rise and fall and a line graph best depicts the fluctuation of said prices
7 0
3 years ago
Pizza Express Inc. began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings.
Anastaziya [24]

Answer:

a) I used an excel spreadsheet since there is not enough room here.

b) Net income = $8,950

Cash flows form operating activities =

Net income                                             $8,950

Adjustments to net income:

  • Increase in account payable       <u>    $250</u>

Net cash from operating activities        $9,850

Net income is lower because a company must record revenues and expenses when they happen, not when they are associated with cash flows. This is why a company that makes all credit sales might have a large profit, but a small amount of cash (the opposite of this situation).

Download pdf
5 0
3 years ago
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu
Kamila [148]

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

Fair value = 588,000

Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

Revaluation gain = $46,000

The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

3 0
2 years ago
Suzette's husband told her, "I admire your boldness, but I'm not sure that you should open that business. I've heard that entrep
Nataly_w [17]

Answer:

Gamblers

Explanation:

Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.

In this scenario, Suzette's husband told her, "I admire your boldness, but I'm not sure that you should open that business. I've heard that entrepreneurs are gamblers." Suzette replied, "That's a common myth. In fact, entrepreneurs take very careful, calculated risks and are not afraid to act on those decisions."

Entrepreneurship is one of the factors of production and it is the intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

4 0
2 years ago
PLEASE HELP WILL GIVE BRAINLY!!!!!!!!!!!!!!!!!!
pav-90 [236]

Answer:

Hola Amigo! Here's ur answer :D

Explanation:

The equilibrium price is the only price where the desires of consumers and the desires of producers agree—that is, where the amount of the product that consumers want to buy (quantity demanded) is equal to the amount producers want to sell (quantity supplied).

Happy to Help!

3 0
3 years ago
Other questions:
  • What is the difference between a prepaid tuition plan and a college savings plan?
    15·2 answers
  • What are the portfolio weights for a portfolio that has 148 shares of Stock A that sell for $35 per share and 110 shares of Stoc
    13·1 answer
  • I would say, "This situation is a problem for someone with Sharon’s leadership style. Sharon’s team has been on the job for a wh
    12·1 answer
  • Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture
    10·1 answer
  • Jennifer has offered to sell her laptop computer for $750 to Jack. She tells Jack that the computer is only six months old but,
    11·1 answer
  • What is the benefit to manufacturing items with interchangeable parts?
    10·1 answer
  • Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1)
    7·1 answer
  • Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93
    12·1 answer
  • Dow CEO Jim Fitterling mentions a(n) _____ in support of companies' efforts to remove plastic waste from the oceans.
    13·1 answer
  • What are true statements about the history of the fractional banking system?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!