Answer:
Explanation:
The journal entries are shown below:
On Jan 1 - Cash A/c Dr $5,000,000
To Bonds Payable A/c $5,000,000,
(Being bond is issued)
On June 30 - Interest expense A/c Dr $150,000
To Cash A/c $150,000
(Being interest paid for cash)
On December 31, Bonds Payable A/c Dr $5,000,000
To Cash A/c $5,000,000
(Being payment of principal is recorded on the maturity date)
Answer:
b. $392000.
Explanation:
The computation of the inventory balance reported on the balance sheet is shown below:
<u>Product Cost Net realizable value Lower value
</u>
A $128000 $134000 $128,000
B $90,000 $85,000 $85,000
C $179,000 $181,000 $179,000
Total $392,000
Answer:
$46,000
Explanation:
We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .
DATA
Fair value = 588,000
Cost = 542,000
Revaluation gain = Current fair value - Cost
Revaluation gain = 588,000 - 542,000
Revaluation gain = $46,000
The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.
Answer: Conservatism
Explanation: The conservatism concept can be ncept may be explained as an accounting principle which ensures that an organization tends to be very careful in handling its finances, with the conservatism concept, financial management often lean towards an approach which tends to play down future gains and concentrate more on potential chances of losses in the future. With such approach the organization tends to be very prudent in its financial management. In other words, conservatism shifts toward a tendency to understate its asset or income rather than overstate its asset.
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