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NARA [144]
3 years ago
8

The investments of Steelers Inc. include a single investment: 42,730 shares of Bengals Inc. common stock purchased on September

12, Year 1, for $14 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $12 per share.
Required:
A. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles.
B. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?
Business
1 answer:
Inga [223]3 years ago
7 0

Answer:

Explanation:

A. The journal entries are shown below:

On September 12

Investment A/c - Bengals Inc A/c Dr $598,220   (42,730 × $14)

          To Cash A/c                                     $598,220

(Being the acquired investment including brokerage commission is recorded)

On December 31

Unrealized gain or loss on available-for-sale securities A/c Dr $85,460            

            To Valuation allowance for available-for-sale securities $85,460

(Being decline in share value is recorded)

The computation is shown below:

= 42,730 shares × ($14 per share - $12 per share)

= 42,730 shares × $2 per share

= $85,460

B. The unrealized gain or loss for available-for-sale investments is shown in the Stockholder equity section on the balance sheet. It is to be shown in the negative item in the equity section.

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ANSWER – TRUE

 

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2 years ago
The founder of ABC​ Corp., who had only an​ eighth-grade education, built his company into a multinational success. He often tal
hichkok12 [17]

Answer:

C. a company's culture affects the decisions managers make.

Explanation:

Because the decision was made by the manager to not offer tuition assistance and this perspective is part of the corporation culture, since that the founder thought that education from experience was more important than from books or educational institutions.

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3 years ago
Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its fact
andreev551 [17]

Answer:

Explanation:

We know that

The manufacturing overhead would be comprised of

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary + insurance on factory machine

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And, the direct labor includes the labor part which are making the products and in return they received the wages

So, the categorization is shown below:

1. salaries for assembly line inspectors  - Direct labor or manufacturing overheads

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3. property taxes on the factory building  - manufacturing overheads

4. factory repairs  - manufacturing overheads

5. upholstery used in manufacturing furniture  - Direct material

6. wages paid to assembly line workers  - Direct labor

7. factory machinery depreciation  -  manufacturing overheads

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Answer:

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Explanation:

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3 years ago
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Sunlight Design Corporation sells glass vases at a wholesale price of $4.50 per unit. The variable cost to manufacture is $1.75
guapka [62]

Answer:

D) 5182 glass vases

Explanation:

<em>Contribution per glass vases:</em>

$4.5 selling price - $ 1.75 variable cost= 2.75

<em>Operating income:</em>

29,000 units x $ 2.75 - $ 8,500 = $71,250 operating income

<em>Target income is to obtain a 20% increase:</em>

71,250 x (1 + 20%) = 85,500 target income:

<em>units needed for target income:</em>

(85,500 target income + 8,500 fixed cost) / 2.75 contribution per unit= 34.181,81

aditional glass vases needed for target income:

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