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3 years ago

Difference between debit the receiver and credit the giver

Business

1 answer:

Vinil7 [7]3 years ago

6 0

Answer:

Explanation:

When a payment is made to somebody, you debit the receiver of that payment and credit Cash or Bank as money is paid from cash or by means of cheque. When money or cheques are received, you credit the person who is paying you and you debit the cash or bank.

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On December 21, 2020, Sage Company provided you with the following information regarding its equity investments. December 31, 20

Sindrei [870]

Answer:

(a) Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

Cr Equity Investment (trading) $10,900

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Explanation:

(a) Preparation of the adjusting journal entry needed on December 31, 2020

Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) Preparation of the journal entry to record the sale of the Colorado Co. stock during 2021

During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

($10,900-$10,350)

Cr Equity Investment (trading) $10,900

Dec. 31, 2021

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Calculation for Fair value Adjustment

Cost FV Profit Unrealized Gain (Loss)

Clemson Corp. stock $20,400-$19,390 =$1,010

Buffaloes Co. stock $20,400-$20,900=-$500

Total portfolio $40,800 $40,290 ($510)

Previous Fair value adjustment $1,610

Unrealized Holding Gain $1,100

($1,100-$510)

4 0

2 years ago

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest compe

dangina [55]

Answer:

C) The demand for analgesic drugs in the Terranian market is expected to remain stable.

Explanation:

The options were missing:

A) Omni Healthcare often takes money from other strategic business units to support Cetaprin.
B) A customer survey shows that Cetaprin users do not prefer it to other analgesics in the market.
C) The demand for analgesic drugs in the Terranian market is expected to remain stable.
D) Febex is rapidly gaining market share over Cetaprin due to aggressive marketing efforts.
E) The Terranian market for healthcare products is expanding rapidly.

A cash cow is a mature product that is sold in a slow growth market, but holds a significant market share, and generate large and constant cash inflows to the company.

3 0

3 years ago

Holling Inc. uses the weighted-average method in its process costing. The following data concern the companyâ€™s Mixing Departme

artcher [175]

Answer:

Statement of Cost per equivalent unit

Particulars Materials Conversion

Cost of beginning work in process $8,130 $9,128

Add: Costs added during the month $226,500 $284,232

Total cost A $234,630 $293,360

Number of equivalent units B 9,900 9,400

Cost per equivalent unit (A/B) $23.70  $31.21 

8 0

2 years ago

In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Stand

Olin [163]

Answer:

$18,000 F

Explanation:

Actual overhead– Overhead Budgeted=

Overhead Controllable Variance

Actual overhead=$194,000

Overhead Budgeted=$212,000

$194,000–$212,000

=$18,000 F

(40,000 ×$3.80) + $60,000

=$152,000+$60,000

= $212,000

Therefore the manufacturing overhead controllable variance is $18,000 F

3 0

3 years ago

Paul's Landscaping purchased $500 of office supplies on credit. The company's policy is to initially record prepaid and unearned

sattari [20]

Answer:

Explanation:

Businesses maintain the office supplies inventory of supplies and record the supplies purchased into this account and expense it afterward with the usage of inventory. In this question offices supplies purchased will be debited to office supplies account. As it is purchased on account so it will be credited to account payable account to make a liability against the transaction.

6 0

3 years ago

Difference between debit the receiver and credit the giver ​

Difference between debit the receiver and credit the giver