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user100 [1]
3 years ago
12

Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the inves

tments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required: 1. Prepare appropriate adjusting entry at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry
Business
1 answer:
dimulka [17.4K]3 years ago
6 0

Answer:

1. 31 Dec 2021

Dr Net unrealized holding gain/loss 25,000

Cr Fair value adjustment 25,000

2. None

Explanation:

Preparation of Journal entry

First step is to calculate for the unrealized loss

Unrealized loss=Short term loss-Long term gain

Unrealized loss=45,000-20,000

Unrealized loss=25,000

Journal entry

31 Dec 2021

Dr Net unrealized holding gain/loss 25,000

Cr Fair value adjustment 25,000

(To record unrealized loss on available for sale securities)

2. No amount would be reported in the income statement at December 31, 2021 because the Net unrealized holding gain/loss will be reported in other comprehensive income .

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What is a metric when it comes to data analysis? Please provide a definition.
kati45 [8]

Answer:

Metrics are the numbers you track, and analytics implies analyses and decision making. Metrics: What you measure to gauge performance or progress within a company or organization. Your most important metrics are your key performance indicators, or KPIs.

Explanation:

7 0
2 years ago
Muckrakers were writers who wrote mostly about blank in government and business
Bezzdna [24]
<span>Muckrakers were writers who mostly wrote about corruption in government and business. These American journalists were critics of many things. They earned their name from President Theodore Roosevelt who borrowed the term from John Bunyan's "Pilgrim's Progress" where a customer was so occupied in raking muck that he paid no attention to anything around him. These muckrakers drew attention from the public about problems in society and garnered strong support from the progressive movement.</span>
7 0
3 years ago
Read 2 more answers
Hunter &amp; Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost charact
Yuri [45]

Answer:

a. 7,900

b. 10,100

Explanation:

As for the provided information,

We know at break even point taxes shall be = 0 as there are no profits and no losses.

a. At break even: = \frac{Fixed\ Cost}{Contribution}

Fixed Cost = $308,100

Contribution per unit = Selling price - Variable cost = $79 - $40 = $39

Therefore, break even units = \frac{308,100}{39} = 7,900 smokers

b. In case the company wants a profit of $51,480 after tax @ 40% then,

Earnings before taxes = \frac{51,480}{1 - 0.4} = $85,800

Therefore, number of units = \frac{Fixed\ Cost + Profit\ before\ tax}{Contribution\ per\ unit}

= \frac{308,100 + 85,800}{39} = 10,100

5 0
3 years ago
A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 3
Monica [59]

The inventory indicates that the cost of goods sold will be $25000.

<h3>How to calculate the cost of goods sold</h3>

It should be noted that the cost of goods sold ic calculated through the formula:

= Opening inventory + Purchases - Closing inventory

= $10000 + $20000 - $5000

= $25000

Therefore, the cost of goods sold is $25000.

Learn more about inventory on:

brainly.com/question/24868116

7 0
2 years ago
Which of the following will not cause the production possibility frontier to shift? Group of answer choices the introduction of
algol13

Answer:

an increase in the working population

Explanation:

The Production possibilities frontier (PPF) is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.  

The PPF can shift either inward or outward.

An outward shift is associated with an increase in output while an inward shift is associated with a reduction in output.

Factors that cause the PPF to shift

1. changes in technology. technological progress leads to outward shift of the PPF. introduction of "fiber optic" technology would shift the PPF outward.

2. changes in available resources. a land reclamation program would increase the land available for production and this would increase output. While an explosion destroying a chemical plant would reduce output and lead to an inward shift of the PPF

3. changes in the labour force. A decrease in unemployment would increase output and shift the the PPF outward

Working population is the number of people between 15-59.

6 0
3 years ago
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