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3 years ago

Storm, Inc. purchased the following available-for-sale securities during 2016, its first year of operations:

Business

1 answer:

prisoha [69]3 years ago

5 0

Answer:

As per accounting standards available-for-sale securities are recorded at fair value through profit and loss account or other comprehensive income. We assume that company choose to record it at fair value through profit and loss account.

The answer of each requirement is given below.

a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016

Loss on valuation $ 4,250

Investment Cost $ 4,250

Working

Dust Devil, Inc. = 40 * 1900 = 76,000 - 81,700 = -5,700

Gale Co. = 75 * 850 = 63,750 - 68,000 = -4,250

Whirlwind Co. = 42 * 2850 = 119,700 - 114,000 = 5,700

Profit/ (Loss) = (4,250)

b. Is there any impact of December 31, 2016 journal entry on the income statement

The company income for the year will be reduced by ($ 4,250).

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Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,

deff fn [24]

Answer:

Check the explanation

Explanation:

Sales price variance = (Actual price - Budgeted price) * Actual units sold

Product R : ($25 - $26) * 123000 = $123000 unfavorable

Product S:($20 - $22) * 162700 = $325400 unfavorable

Product T: ($10 - $20) * 54000 = $540000 unfavorable

Sales volume variance = (Actual units - Budgeted units) * Standard price

Product R : (120000 - 123000) * 26 = $78000 favorable

Product S:(150000 - 162700) * 22 = $279400 favorable

Product T: (20000 - 54000) * 20 = $680000 favorable

Notes:

Actual units:

Product R = $3075000/ $25 = 123000

Product S = $3254000/$20 = 162700

Product T = $540000/$10 = 54000 units

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2 years ago

The first of two significant fiscal policy initiatives enacted by the government during the Great Recession, signed in February

Vadim26 [7]

Answer:

b. Economic Stimulus Act of 2008

Explanation:

The Economic Stimulus Act of 2008 was enacted during the term of George.W Bush. It was done to help encourage business investments during the recession by granting tax rebates to every taxpayers and consequently increasing disposable income. The Economic Stimulus Act of 2008 granted tax rebates of the lesser of net income tax liability or $600 to every taxpayer and $1200 to tax paying couples who filed their taxes jointly.

4 0

3 years ago

What is the best example of a factor that indicates the success of a corporation?

ludmilkaskok [199]

The best example of a factor that indicates the success of a corporation is its projected earnings. The earnings play a major role in characterizing a successful company. If earnings are stable, has positive growth, and reflects quality, then the corporation is successful.

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3 years ago

g he contractual rate of interest on a Bond is also known as a. the effective interest rate. b. the stated interest rate. c. the

notsponge [240]

Answer:

B. The Stated Interest Rate.

Explanation:

hope it helps ^^'

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1 year ago

Matt owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of $2, 70

Lady bird [3.3K]

Answer:

The variable rate is 0.4 $/machine-hour.

The equation fot the utility bill is $C(M)=0.4*M+2180$ .

If Matt anticipates using 1200 machine hours in January, his utility bill will be $ 2660.

Explanation:

We have two points in the year that will let us calculate the fixed utility cost and the variable utility cost.

We will end up with a equation of a line, like this

$C(M)=v*M+F$

Where C (M) is the total utility cost, v is the variable utility cost per machine hour, M are the machines running hours and F is the fixed utility cost.

We have two unknowns and two equations, so it can be solved.

First we can substract the two bills (the highest and the lowest) and equal that to the equation of the line we described

$(2700-2500)=C(1300)-C(800)=(v*1300+F)-(v*800+F)\\\\200=v*1300+F-v*800-F=500*v\\\\v=200/500=0.4$