Answer:
Account Debit Credit
Unrealized loss (Equity) $12,000
Fair Value adjustment (Avaliable $12,000
for sale)
Explanation:
Given Data:
Long-term available-for-sale securities=$70,000
December 31, Securities fair values=$58,000
Required:
The necessary year-end adjusting entry related to these securities.
Solution:
Unrealized Loss occurred=$70,000-$58,000
unrealized Loss occurred=$12,000
Adjusting entry:
Account Debit Credit
Unrealized loss (Equity) $12,000
Fair Value adjustment (Avaliable $12,000
for sale)
Answer:
so that they know that u appreciate that they gave you their time and energy so they can help you and their company.
Explanation:
<span>The fixed costs start the company at a net of -$100 million per year. Each plane that is produced and sold earns the company a net of +$1 million (-2 + 3). This would mean that the company would need to sell 100 airplanes in order to break even for the year.</span>
Answer:
a. Premium
b. Discount
c. Discount
Explanation:
a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium
Therefore, Valley's bond will sell at a premium.
b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, Spring's bond will sell at a discount.
c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, River Inc.'s bond will sell at a discount.
