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murzikaleks [220]
3 years ago
11

Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-en

d cost and fair values for its portfolio of debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X2 is:
Business
1 answer:
Rzqust [24]3 years ago
7 0

Answer:

Dr Available for sale securities 11,500

    Cr Unrealized gains - AFS securities 11,500

Explanation:

The securities cost is $420,000 while the fair market value is $431,500, so the difference is an unrealized gain of = $431,500 - $420,000 = $11,500.

Unrealized gains are included in Other comprehensive income account, which belongs under stockholder equity. When unrealized gains increase, then they should be credited.

Since the securities are held as investment assets, they should also increase by debiting the account.

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The beginning capital balance shown on a statement of owner's equity is $100,000. Net income for the period is $50,000. The owne
Lelu [443]

Answer:  $125,000

                         

Explanation: In simple words, owner's equity refers to the funds that are contributed by the owners of the capital for effectively conduction the operations of the business.

Any profit that the organisation made during a year is treated as a return to the capital and is added to the initial capital while drawing from the capital results in decrease in the available fund for operations.

   Hence the year end balance of the capital in given case is, $1000,000 + $50,000 - $25,000 = $ 125,000

4 0
3 years ago
Flo and Glen form Health Food Inc. to coordinate the purchase, sale, and delivery of food products from organic farms to hospita
aksik [14]

Answer: Option (D)

Explanation:

Benefit corporation is referred to as the traditional organization with the modified accountability delivering it to the higher principle of the purpose, responsibility and transparency. The sole purpose of this Benefit corporation is to commit to the creation of public benefit and thus add sustainable value alongside generating the profit.

4 0
2 years ago
Qualitative data has been described as voluminous and sometimes overwhelming to the researcher. in what ways could a researcher
ahrayia [7]

Researchers can manage and organize data by using strategies in research that will help them into organizing the information that they were able to obtain from the researches that they study. Strategies in which could help them in managing and organizing data are the following—communication, group meetings in which people who are involved with the study, extensive training, conceptual framework development and trails for external and internal audit in which should be created.

5 0
2 years ago
The market risk premium is computed by: adding the risk-free rate of return to the inflation rate. adding the risk-free rate of
OverLord2011 [107]

Answer:

subtracting the risk-free rate of return from the market rate of return

Explanation:

Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset

Market risk premium = market rate of return - risk free rate

the higher the risk premium, the higher the return investors are demanding and the riskier the investment

for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%

Market premium in A = 10% - 5% = 5%

Market premium in b = 20% - 5% = 15%

3 0
2 years ago
Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. $200
PIT_PIT [208]

Answer:

Normal:

$ 3,509.7470

$    563.7093

$ 2,000.00

Due:    

 $3,930.9167

 $   597.5319

 $ 2,000.00

Explanation:

We solve using the formula for common annuity and annuity-due on each case:

C \times \frac{(1+r)^{time} }{rate} = FV\\

C \times \frac{(1+r)^{time} }{rate}(1+rate) = FV\\ (annuity-due)

<u>First:</u>

C 200.00

time 10

rate 0.12

200 \times \frac{11+0.12)^{10} }{0.12} = FV\\

200 \times \frac{11+0.12)^{10} }{0.12}(1+0.12) = FV\\

Normal:  $3,509.7470

Due:       $3,930.9167

<u>Second:</u>

100 \times \frac{(1+0.06)^{5} }{0.06} = FV\\

100 \times \frac{(1+0.06)^{5} }{0.06} (1+0.06)= FV\\

$563.7093

$597.5319

<u>Third:</u>

No interest so no time value of money the future value is the same as the sum of the receipts regardless of time or being paid at the beginning or ending.

1,000  + 1,000 = 2,000

4 0
2 years ago
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