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nevsk [136]
2 years ago
14

Upon her grandfather's death, Jordan inherited 10 shares of Universal Corp. stock that had a fair market value of $5,000. Her gr

andfather acquired the shares in 1995 for $2,500. Four months after her grandfather's death, Jordan sold all her shares of Universal for $7,500. What was Jordan's recognized gain in the year of sale?
Business
1 answer:
Nastasia [14]2 years ago
4 0

Answer: Jordan's recognized gain in the year of sale is $2500.

Explanation:

Given that,

Jordan inherited 10 shares of universal corp. stock upon her grandfather's death and have a fair market value of $5000

Jordan's grandfather purchase these shares in 1995 for $2500

After four months of her grandfather's death, Jordan sold all of the shares for $7500

So,

Jordan's recognized gain in the year of sale = the value of sale - the fair market value at the time of her grandfather's death

= $7500 - $5000

= $2500

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On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:
strojnjashka [21]

Answer:

Dynamite Fireworks

1. January 2

Debit Prepaid Rent $7,500

Credit Cash $7,500

To record the purchase of rental space in advance ($625/month).

2. January 9

Debit Supplies $4,000

Credit Accounts Payable $4,000

To record the purchase of additional supplies on account.

3. January 13

Debit Accounts Receivable $26,000

Credit Service Revenue $26,000

To record the provision of services to customers on account.

4. January 17

Debit Cash $4,200

Credit Deferred Revenue $4,200

To record the receipt of cash in advance for future services.

5. January 20

Debit Salaries Expense $12,000

Credit Cash $12,000

To record the payment of salaries.

6. January 22

Debit Cash $24,600

Credit Accounts Receivable, $24,600

To record the receipt of cash on account.

7. January 29

Debit Accounts Payable, $4,500

Credit Cash $4,500

To record the payment on account.

Adjustments on January 31.

8. Debit Rent Expense $625

Credit Prepaid Rent $625

To record the rent expense for January.

9. Debit Supplies Expense $4,300

Credit Supplies $4,300

To record the supplies expense for January.

10. Debit Deferred Revenue $3,575

Credit Service Revenue $3,575

To record revenue for services provided.

11. Debit Salaries Expense $5,450

Credit Salaries Payable $5,450

To accrue unpaid salaries at the end of January.

12. Debit Service Revenue $29,575

Credit Income Summary $29,575

To close the revenue account to the income summary.

13. Debit Income Summary $22,375

Credit:

Salaries Expense $17,450

Rent Expense $625

Supplies Expense $4,300

To close the expense accounts to the income summary.

Explanation:

a) Data and Calculations:

Accounts Debit Credit

Cash                      $ 24,300

Accounts Receivable 5,700

Supplies                     3,600

Land                        55,000

Accounts Payable                $ 3,700

Common Stock                     70,000

Retained Earnings                 14,900

Totals                  $ 88,600 $88,600

Transactions and Analysis:

January 2 Prepaid Rent $7,500 Cash $7,500 ($625/month).

January 9 Supplies $4,000 Accounts Payable $4,000

January 13 Accounts Receivable $26,000 Service Revenue $26,000

January 17 Cash $4,200 Deferred Revenue $4,200

January 20 Salaries Expense $12,000 Cash $12,000

January 22 Cash $24,600 Accounts Receivable, $24,600

January 29 Accounts Payable, $4,500 Cash $4,500

Adjustments on January 31.

Rent Expense $625 Prepaid Rent $625

Supplies Expense $4,300 Supplies $4,300

Deferred Revenue $3,575 Sales Revenue $3,575

Salaries Expense $5,450 Salaries Payable $5,450

6 0
2 years ago
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Answer:

We will get $7680(thousands)

Explanation:

Answer

If we read the given data values in the passage, it is clear that the mean annual number of smart little cars in china is 7500 and the variance is equal to 6400

The variance is given for the number of cars, but not for the profit.

So, we need to convert the numerical value(number of cars) to money value(profit)

it is given that net revenue per car is $1.2 (thousands)

So, multiplying the net revenue by number of cars

we get, variance in profit = 6400*1.2 = $7680 (thousands)

3 0
3 years ago
You are going to make an investment of $1000, and are considering 2 options: Option one is a zero-coupon 5-year bond of a compan
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Answer:

a. What is the expected return of the risky corporate bond over the 5-year holding-period (in %)?

expected return in $ = (50% x 20% x $1,000 x 4) + (50% x 35% x $1,000 x 4) = $400 + $700 = $1,100

holding period return = ($1,100 - $1,000) / $1,000 = 10%

b. What is its effective annual return?

(1 + 10%)⁰°² - 1 = 1.92%

b. What is its effective annual return?

  • 2. The government bond is the superior investment

The yield of he corporate bond is very low and the risk is too high.

8 0
3 years ago
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