Answer:
Anderson Co. 3,100 shares at $18 per share
Munter Ltd. 10,200 shares at $57 per share
King Co. 5,600 preferred stock at $42 per stock
a. Prepare the entry for the security sale on January 15, 2021.
- Dr Cash 58,880
- Cr Investment in Anderson Co. stock AFS 52,200
- Cr Realized gain on stock AFS 6,680
b. Prepare the journal entry to record the security purchase on April 17, 2021.
- Dr Investment in Castle's stock AFS 38,160
- Cr Cash 38,160
c. Compute the unrealized gains or losses.
- unrealized gain = $40,800 (gain in Munter) - $11,200 (loss in King) - $13,960 (loss in Castle) = $15,640
d. Prepare the adjusting entry for Vaughn on December 31, 2021.
- Dr Investment in Munter's stock 40,800
- Cr Investment in King's stock 11,200
- Cr Investment in Castle's stock 13,960
- Cr Unrealized gain - other comprehensive income 15,640
Answer:
False
Explanation:
Within the relevant range of activities, total fixed costs remain constant and fixed costs per unit decrease as total output increases. Total variable costs vary depending on total output, but variable costs per unit should remain constant.
On a long term basis, all costs are variable, that is why it is important to consider the range of activities, i.e. output levels.
Answer and Explanation:
1. The preparation of direct labor budget is given below:-
Direct labor budget
Units to be produced 2,790
Hours required per unit 5
Total labor hours needed 13,950
(2,790 × 5)
Labor rate per hour $10
Direct labor budget $139,500
(13,950 × $10)
2. The preparation of factory overhead budget is given below:-
Total labor hours needed 13,950
Variable overhead rate per hour $12
Budgeted variable overheads $167,400
(13,950 × $12)
Budgeted Fixed overheads $580,000
Budgeted total overheads $747,400
Answer:
Rice Co.
Journal Entries:
April 5:
Debit Inventory $28,000
Credit Accounts Payable (Jax Company) $28,000
To record the purchase of goods, terms 2/10, n/30.
April 6:
Debit Freight-in Expense $700
Credit Cash Account $700
To record the payment of freight costs for goods purchased from Jax Company.
April 7:
Debit Equipment $30,000
Credit Accounts Payable $30,000
To record the purchase of equipment on account.
April 8:
Debit Accounts Payable (Jax Company) $3,600
Credit Inventory $3,600
To record the return of goods to Jax Company.
April 15:
Debit Accounts Payable (Jax Company) $24,400
Credit Cash Discount $488
Credit Cash Account 23,912
To record the full settlement on account.
Explanation:
Rice Co's journal entries are made on a daily basis as transactions occur. They show the accounts to be debited and the ones to be credited in the general ledger. Journal entries are the initial records of transactions made by the company in its accounting system.
<span>This is referred to as "Res judicata".
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Res judicata is a Latin expression which means "a thing decided". It is a precedent-based law principle intended to avert relitigation of cases between similar gatherings with respect to similar issues and save the coupling idea of the court's choice. Once a last judgment has been come to in a claim, consequent judges who are given a suit that is indistinguishable to or considerably the same as the prior one will apply the regulation of res judicata to maintain the impact of the primary judgment.
