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SVETLANKA909090 [29]
3 years ago
6

S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&L purchased C

oca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2022, for $880,000. At December 31, the bonds had a fair value of $873,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2021 and (b) the sale of the bonds in 2022, including recognition of any unrealized gains in 2022 prior to sale and reclassification of amounts out of OCI.
Business
1 answer:
yKpoI14uk [10]3 years ago
5 0

Answer:

S&L Financial

Journal Entries

Date               Description                            DR                        CR

a. 2021

Jan 3             Bond - available for sale        $875,000    

                    Cash                                                                  875,000

                   Being the purchase of bond.

Dec 31          Income statement                        2,000

                   Bond                                                                      2,000

                  Being the changes in fair value of the bond

b. 2022

               Cash                                                  880,000

               Bond                                                                      873,000

              Income statement                                                     7,000

            Being the amount realized at sales of bond                                  

Explanation:

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• Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2016 to $9.2 million in 2017. Its assets total
Vinil7 [7]

Answer:

AFN $ 2,169

Explanation:

Equation        

5,000 x 0,15 = 0,75

-1,400 x -1,25 = 1,75

-9,200 x 0,06 x 0,60 = -0,3312  

 AFN = $2,169

A0 (Current Level of Assets)      =         5,000

L0 ( Current Level of Liabilities) =  1,400

Var S (Percentage increase in Sales) =   0,15  

S1 (New level of Sales) =  9,200

PM (Profit Margin)  =  0,06  

b (Retention Rate)  =  0,60  

AFN  (Additional Funds Needed)  =  $ 2,169

   

7 0
4 years ago
On January 1, 2021, Gundy Enterprises purchases an office building for $338,000, paying $58,000 down and borrowing the remaining
Rina8888 [55]

Answer:

Debit Building $338,000

Credit Cash $58,000

Credit Notes Payable $280,000

Explanation:

Preparation of the journal entry to Record the purchase of the building on January 1, 2021.

Based on the information given we were told that the company purchases an office building for the amount of $338,000 which means that if they paid $58,000 down and as well borrowed the remaining amount of $280,000 the journal entry to Record the purchase of the building on January 1, 2021 will be :

Debit Building $338,000

Credit Cash $58,000

Credit Notes Payable $280,000

(Being to record the purchase of building)

3 0
3 years ago
Higher level profession requires in the knowledge good skills and a special training explain this statement with example
riadik2000 [5.3K]

Answer:

true

Explanation

Higher level professions are professions occupied by professionals who think strategically and carry out their duties by adhering to the ethical standards that governs their profession. Examples are medical practitioners, engineering, accountant and pilot. All these requires in-depth knowledge , good skill and special training because of the technical nature of the profession.

Having a degree is not enough to deliver on these professions because of their complexities. These professionals must adhere to the ethical standard that governs their profession and also hold themselves out of having the required training, knowledge and experience .

Take for instance a pilot who controls a plane. Asides having the required education, he would undergo special trainings on how to fly planes. He must also have the skills and experience of flying before being certified to fly people because of the risky nature of the profession.

The above example also applies to a doctor. He would undergo trainings depending on his area of specialization and must have knowledge before being certified to work as a doctor. The reason is that he is dealing with lives hence must possess the the required skills and experience

7 0
3 years ago
Which of the following describes the tactic of Value Pricing?
TEA [102]

Answer:

C

Explanation:

c. ensuring that there is a good fit between the quality and service of a product at a fair price.

value Pricing is customer focused pricing. The price of the product is decided on the basis of customer's perceptions. All other three options do not meet the criteria to be called a tactic of value pricing. Having a good fit between the quality and service of a product at a fair price.

4 0
3 years ago
Best Buy might use all of the methods of change listed below. Which of these includes inputs, strategic plans, target elements o
Strike441 [17]

Answer:

E)Systems model of change

Explanation:

These are the options for the question

A)Organizational structure plan

B) social factors method

C) Organizational arrangements

D)Three stage model of planned change

E)Systems model of change

Best Buy are known with selling of consumer electronics as well as a variety of related merchandise.

Systems model of change can be regarded as a model that focus on big picture perspective of change. The model is base on interaction that exist among the key components of change.

The Systems Model of Change can also known as Organization-Wide Change which focus on the fact that there must be implementation of a change organization-wide and not a implementation in piecemeal

Main components that made up of systems model of change are;

✓target elements of change

✓inputs

✓ strategic plans

✓outputs

3 0
3 years ago
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