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NemiM [27]
4 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]4 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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Answer:

Break even point in units = 40000 units

Explanation:

The break even point in units is the number of units where the total revenue equals total cost. It is a point of no profit and no loss. The break even point in units is calculated as follows,

Break even in units = Fixed cost / Contribution margin per unit

Where, contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = [1140000 - (570000 + 57000)] / 57000

Contribution margin per unit = $9

Break even point in units = 360000 / 9

Break even point in units = 40000 units

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4 years ago
A proposed new investment has projected sales of $515,000. Variable costs are 44 percent of sales, and fixed costs are $128,500;
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