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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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In 2012, a nation’s population was 10 million, its real GDP was 1.21 billion. By 2013, its the population had increased to 12 mi

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2 years ago

When GE appointed Jeff Immelt--a white male and long-time GE executive--to succeed Jack Welch--also a white male--as their new C

geniusboy [140]

Answer:

Stability

Explanation:

When a company wants to make a transition in leadership there are various strategies being such change depending on business needs.

For example a company may want a strategic change, an ambiguous change, an innovative change, or a stable change.

In the given scenario GE appointed Jeff Immelt a white male and long-time GE executive to succeed Jack Welch also a white male as their new CEO.

There is no change in the profile of the new leader, and the fact that he is a long-time GE executive shows they want to maintain the same traditions as before.

So this is a stable strategy

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2 years ago

Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Shee

lord [1]

Answer:

Southwestern Mutual Bank

This would increase the loans account and the deposit account by $100 respectively.

Explanation:

a) Data and Calculations:

Southwestern Mutual Bank

Balance Sheet

Assets Liabilities and Owners' Equity

Reserves $150 Deposits $1,200

Loans $600 Debt $200

Securities $750 Capital (owners' equity) $100

Total assets $1,500 Total liabilities + equity $1,500

New customer deposit = $100

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2 years ago

Why should a manager in an international business care about the political economy of free trade or about the relative merits of

Rudik [331]

Answer:

The answer is explained below

Explanation:

To begin with, the policies that the goverments decide to implement in their countries tend to influece in a huge way the companies decisions and therefore its actions as well. Therefore that as a company manager of an international business he needs to stay very updated about the government policies over the countries where his company works. Moreover, the manager will understand that if there is free trade in a country then there will be no problems for his company to start selling there and obtaining the maximum profits as possible and if there is protectionism then the company will have to deal with the policies that the government implemented there. And that is why that as an international business manager he should really care about the policies of the country's government and if there is free trade of protectionism.

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3 years ago

Ashland Corporation estimates its manufacturing overhead costs to be $360,000 and its direct labor costs to be $400,000 for 2020

denis23 [38]

Answer:

Allocated MOH= $180,000

Explanation:

Giving the following information:

Manufacturing overhead is applied to jobs based on direct labor costs using a predetermined overhead rate.

The estimated manufacturing overhead costs are $360,000 and direct labor costs $400,000.

First, we need to calculate the MOH rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 360000/400000= $0.9 per direct labor dollar.

The actual manufacturing labor costs for job 3 are $200,000.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 0.9*200000= $180,000

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3 years ago