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NemiM [27]
3 years ago
14

Prepare journal entries to record the following transactions and events, based on the assumption that the nonprofit uses a singl

e account to record all unrealized and realized investment gains and losses. 1. On July 15, 2018, a nonprofit received a donation of Apple stock that had a fair value of $75,000 at the time of the donation. The donor told the nonprofit that the stock could be sold and used only to finance a particular research project. 2. On December 31, 2018, when the nonprofit closed its books, the stock had a fair value of $76,500. 3. On February 15, 2019, the nonprofit sold the stock for $76,000.
Business
1 answer:
stira [4]3 years ago
5 0

Answer:

1. Apple Stocks             Dr. $75,000

  Deferred Donation Income   Cr. $75,000

2. Apple Stocks Dr. $1,500

        Gain on Apple Stocks   Cr. $1,500

3. Cash         Dr. $ 76,000

   Gain/Loss on Apple stocks Dr.$1,500

                      Apple Stocks             Cr.$76,500

Explanation:

1. when stocks are received subject to a condition that we can't recognize donation income. therefore it is recorded as liability. please note that deferred income is called as liability.

2. When value of stocks increase, asset stock of apple also increase by differential amount.

3. when asset is sold, the loss is recognized and assets are knocked off from books and cash asset is recorded.

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Suppose all the producers sell toasters through Wal-Mart, and WalMart lets producers choose from 2 options. With Option A, a pro
Marta_Voda [28]

Answer:

see explaination

Explanation:

1. A low-quality producer will not provide any warranty, because he knows there will be more warranty claims.

He will choose option B.

Example:

Option B:

Toaster sell 100

Price $10

Sales = $1000

Profit = $100 (let's say it costs him $9 to make it).

Toaster sell 35 (as 5 times high price).

Price $49

Sales = $1725

Warranty Expense (let's say, due to multiple times claims) = $1500

Profit = -$90 (let's say it costs him $9 to make it).

2. A high-quality producer will provide any warranty because he knows there will be very very few warranty claims.

He will choose option B.

3. Yes, the act of offering free warranty will go a long way in conveying a positive signal to customers that the brand is providing quality product & it trusts its product.

3 0
3 years ago
Under what economic system do all businesses operate only as directed by the government?
Sergeu [11.5K]
<span>hello there your answer would be communism</span>
7 0
2 years ago
During 2017 the inflation rate increased slightly but remained in the​ "comfort zone" and the unemployment rate was low. Why mig
goblinko [34]

Answer:B It thought that unemployment was a greater problem than the rising inflation rate

Explanation:

Inflation is the continuous rise in price of goods and services which is as a result of large volume of money in circulation used for the few available goods and services.

Unemployment is a situation where all that are willing and capable of being employed are unable to get employment.

In the above scenario lowering Interest rates will increase the volume of money in circulation which will invariably increase inflation and we equally increase level of investment as the cost of fund will be cheaper thereby lowering unemployment.

This action means unemployment is of greater problem than rising inflation.

It does not mean inflation is of more concern than unemployment otherwise it will have increase the interest rate, it will make loanable fund demanded to exceed supply and the quantity of money in supply will increase.

7 0
3 years ago
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, a
WINSTONCH [101]

Answer:

Deoro Company

1. Unit cost using direct labor hours to apply overhead:

Unit Cost

Model A $167.985

Model B $226.99

2. Unit cost using the four activity drivers:

Unit Cost

Model A $133.97  

Model B $287.28

3. Activity-based costing method always produces the more accurate cost assignment.

Explanation:

a) Data and Calculations:

Activity                    Expected Cost      Activity Driver    Activity Capacity

Setting up equipment   $548,080       Number of setups          680

Ordering costs                 313,200        Number of orders     17,400

Machine costs                 939,400        Machine hours         42,700

Receiving                         343,000        Receiving hours         9,800

Total overhead costs $2,142,680

Activity Rates:

Setting up equipment   $806 per setup ($548,080/680)

Ordering costs              $18 per order ($313,200/17,400)

Machine costs              $22 per machine hour ($939,400/42,700)

Receiving                     $35 per receiving hour ($343,000/9,800)

                                    Model A            Model B

Direct materials        $600,000          $800,000

Direct labor               $480,000          $480,000

Overhead applied  $1,063,500        $1,018,200

Total costs              $2,143,500      $2,298,200

Units completed            16,000               8,000

Cost per unit                $133.97         $287.275

Direct labor hours          6,000               2,000

Number of setups             400                  200

Number of orders          6,000             12,000

Machine hours             24,000             18,000

Receiving hours             3,000               7,000

The company's normal activity is 8,000 direct labor hours.

Assignment of overhead costs:

                                        Model A                               Model B

Number of setups         $322,500 (400 * $806)    $161,200 (200 * $806)

Number of orders            108,000 (6,000 * $18)      216,000 (12,000 * $18)

Machine hours                528,000 (24,000 * $22)  396,000 (18,000 * $22)

Receiving hours               105,000 (3,000 * $35)    245,000 (7,000 * $35)

Total overhead applied $1,063,500                    $1,018,200

Overhead based on direct labor hours:

Total overhead costs = $2,143,680

Total direct labor hours = 8,000 (6,000 + 2,000)

Overhead rate per DLH = $267.96

Allocation of overhead:

                                    Model A                           Model B

Direct labor hours          6,000                            2,000

Overhead (DLH) $1,607,760 ($267.96 *6,000) $535,920 ($267.96  * 2,000)

                                    Model A            Model B

Direct materials        $600,000          $800,000

Direct labor               $480,000          $480,000

Overhead applied  $1,607,760          $535,920

Total costs             $2,687,760        $1,815,920

Units completed           16,000                8,000

Cost per unit            $167.985            $226.99

4 0
3 years ago
At magnira corp., a company that manufactures fruit preserves, fruits of excellent quality are used to make jams, jellies, and m
Juli2301 [7.4K]
<span>In the example of the Magnira Corporation, the fruits are turned into jellies, jams, and marmalades an example of raw materials. Raw materials are basic, unprocessed materials that are used to manufacture goods. Raw materials are often referred to as commodities.</span>
3 0
2 years ago
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