Answer:
2018 Jan. 1 Purchased $50,000 Lake Corporation 10% bonds for $50,000.
- Dr 10% bonds available for sale 50,000
- Cr Cash 50,000
available for sale
July 1 Received interest on Lake bonds.
- Dr Cash 2,500
- Cr Interest revenue on 10% bonds available for sale 2,500
Dec. 31 Accrued interest on Lake bonds.
- Dr Interest receivable 10% bonds available for sale 2,500
- Cr Interest revenue 10% bonds available for sale 2,500
Dec. 31 Market value of the bonds $55,000, prepare the adjusting entry to record bonds at market value. 2019
- Dr 10% bonds available for sale 5,000
- Cr Unrealized gain - other comprehensive income 5,000
Jan. 1 Received interest on Lake bonds.
- Dr Cash 2,500
- Cr Interest receivable on 10% bonds available for sale 2,500
Jan. 1 Sold $25,000 Lake bonds for $26,650.
- Dr Cash 26,650
- Dr Unrealized gain - other comprehensive income 2,500
- Cr 10% bonds available for sale 27,500
- Cr Realized gain on 10% bonds available for sale 1,650
July 1 Received interest on Lake bonds.
- Dr Cash 1,250
- Cr Interest receivable on 10% bonds available for sale 1,250
The term used to describe expenses that are incurred by a specific department is direct expenses.
Accounting divides business expenses into two categories: operating expenses and non-operating expenses.
The operating expenses are associated with the primary activities of the business, such as the cost of goods sold.
Non-operating expenses, on the other hand, are those incurred that are unrelated to the primary activities of the business entity.
- Option a. is not correct. Indirect expenses aid in the operation of the business but are not directly traceable to the products, such as corporate office rent, employee salaries, and so on. In general, indirect expenses are recorded on the income statement under the heading "Selling and general administrative expense."
- Option b. is also wrong. There are no such things as margin costs.
- Option c is not correct. Departmental expenses are expenses, but they are not expenses incurred by a particular department.
- Option d. is the correct response. Direct Expenses are expenses incurred solely for the benefit of specific departments.
Hence, direct expense is the answer.
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Answer: Dedicated Funds
Explanation: A dedicated fund is a part of an income that is strictly set aside for a fixed purpose from the moment they are gotten.
A dedicated fund can take any format, some of which includes; money set aside for savings, money kept as tax, money set aside for insurance payments etc.
Answer:
the supply curve for iPads would shift to the left, decreasing the quantity supplied at every price level. This shift would result in a price increase. Since the price of iPads increased, the demand will decrease, also decreasing the demand of Apple Pencils.
Since Microsoft Surface are substitutes, when the price of iPads increase, the demand for Surface tablets will increase.
Answer:
$51,020.41
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
PV = FV × (1 + r) ^ (-n)
PV = 25,000 (1 + 5%) ^ (-1) + 30000 (1 + 5%) ^ (-2)
= 51020.41
Where PV = present value
FV = Future value = 25,000 In year 1 and 30,000 In year 2
I = interest rate = 5%
N = time = 1 ,2
I hope my answer helps you
