Answer:
Option A. Debit unrealized holding gain or loss for $400,000 and credit estimated liability on purchase commitment for $400,000.
Explanation:
According to the Accounting Principles losse are always debited and gains are always credited. This means that the notional loss or gain due to the decrease or increase in the value of the contract must be recorded in the current year by debit or credit respectively.
The notional gain or loss at the end of fiscal year, can be calculated by taking the difference of the Agreed value and the current market value of the contract.
The agreed value of the contract is $2,000,000 and the Market Value is $1,600,000, which means that the unrealized losses are $400,000 ($2,000,000 - $1,600,000).
The double entry would be recording the losses of $400,000 due to technologically decrease in the value:
Dr Unrealized Loss $400000
Cr Estimated liability on Purchase Commitment $400000
Answer:
D
Explanation:
Can I get marked Brainliest
Bankruptcy. Hope this helps.
Answer: free trade
Explanation:
A policy of permitting the people of a country to buy and sell where they please, without restrictions, is referred to as the free trade.
Free trade allows countries interact with one another and trade the foods and services that they've.
Answer:
(Note please, the background of L.L. Bean was not stated. I am answering on a general note.)
L.L. Bean empowered its employees to make independent decisions that ultimately have financial consequences so as to save time needed to consult superior authorities for directions.
Explanation:
In the course of business, some customers might have needs and inquiries that have to be responded to on the spot so that they do not lose their patience and move to other competitors.
When an organization empowers its employees to make independent decisions that might affect the company financially, it is in a bid to serve the customers better by saving their time. This also instills trust and confidence in the company because the employees are knowledgeable of their services.
