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stellarik [79]
3 years ago
11

Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On Decemb

er 31, the cost of the trading securities portfolio was $41,500, and the fair value was $46,300. Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.
Business
1 answer:
Artist 52 [7]3 years ago
6 0

Answer:

Dr. Trading securities                                    $4,800  

Cr. Unrealized gain on trading securities    $4,800

Explanation:

Trading securities are recorded reported on the fair market value. The gain or loss arise from the increase or decrease in the value of trading securities. There is a gain if the price of trading security increases and loss when the price of the trading security decreases. Unrealized gains are reported in the separate section of stockholders equity.

Gain on Trading securities = Fair value of security portfolio - Cost of security portfolio = $46,300 - $41,500 = $4,800  

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Investors put up $520,000 to construct a building and purchase all the equipment for a new restaurant. The investors expect to e
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Total cost per week = $3600

The correct option is <u>C.$3,600</u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

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Variable cost = 1000 + 600 = 1600

Total cost = Fixed cost per week + Variable cost

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4 years ago
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vagabundo [1.1K]

Answer:

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Explanation:

4 0
3 years ago
At the beginning of a year, a company predicts total direct materials costs of $900,000 and total overhead costs of $1,170,000.
ASHA 777 [7]

Answer:

1.30

Explanation:

The cost of production is usually split into direct and indirect cost or overheads. the overheads is usually stated as a function of the direct cost( labour, machine hours, materials etc.)

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This means that the company will incur an overhead cost of $1.30 for every $1 spent on direct materials.

6 0
3 years ago
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