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mina [271]
3 years ago
6

Hagar Corporation has municipal bonds classified as a held-to-maturity at December 31, 2017. These bonds have a par value of $80

0,000, an amortized cost of $800,000, and a fair value of $720,000. The company believes that impairment accounting is now appropriate for these bonds.
Required:
Prepare the journal entry to recognize the impairment.
Business
1 answer:
sergejj [24]3 years ago
4 0

Explanation:

The journal entries are as follows

On December 31,2017

Loss on impairment Dr $80,000

        To Debt investment - available for sale $80,000

(Being the loss on impairment is recorded)

It is computed below:

= $800,000 - $720,000

= $80,000

On December 31, 2017

Fair value adjustment- available for sale Dr $80,000

                To Unrealized holding gain or loss - equity $80,000

(Being the fair value adjustment is recorded)

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Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.
Strike441 [17]

Answer:

high,high

not all prices adjust quickly

below

Explanation:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too high.

Real wages decline as nominal wages are adjusted. As a result, the economy returns to full employment

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

As people observe the lower price level, the economy returns to the long-run aggregate supply curve.

According to the misperceptions theory, the economy is in a recession when the price level is below what was expected.

As people observe the lower price level, their expectations adjust.

6 0
3 years ago
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000. Bardot Marine manufactures two types
Olenka [21]

Answer: the total number of budgeted direct labor hours for the year. - 600 DLH

the single plantwide factory overhead rate- $100 per DLH

the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. Speedboats $ per unit Bass boats $ per unit--- For Both Products $1,200

Explanation:

5 0
3 years ago
If the Federal Reserve tightens the money supply, other things held constant, short-term interest rates will be pushed upward, a
Sophie [7]

Answer:

The statement is true

Explanation:

Tightening monetary policy or curbing money supply in an economy is a move by Federal Reserve to control inflation or bring down over-heated economic growth.

Money supply is curbed by increasing short-term interest rates, thereby increasing cost of borrowing and making borrowing less attractive to public. This increase in short-term rates, also called Federal fund rates are usually greater than long-term interest rates prevailing in the market.

6 0
3 years ago
In its​ year-end income​ statement, Black Knights Company reported cost of goods sold of​ $450,000. Changes occurred in several
torisob [31]

Answer:

The answer is $330,000

Explanation:

Cash paid to suppliers is the total amount of cash paid to its creditors.

We can find that through:

Cost of sold

Minus: Decrease in inventory

Plus: Decrease in accounts payable

=Cash paid to suppliers.

Now let's start:

Cost of sold - $450,000

Decrease in inventory - $160,000

Decrease in accounts payable- $40,000

$450,000 - $160,000 + $40,000

=$330,000

Therefore, Cash paid to suppliers is $330,000

5 0
2 years ago
Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her
Troyanec [42]

Answer:

AAA = (8000)

STOCK BALANCE = 0

AEP = 2000

Explanation:

-----------------AAA-------- stock basis---------AEP

Beg. Bal--- 2000 - - - - 10,000 - - - - - - 6,000

Distribution (2000) - - - - (2000) - - - - - (4000)

Balance - - - 0 - - - - - - - 8000 - - - - - - 2000

LTCG - - - 2000 - - - - - 2000 - - - - - - - - 0

Balance - -2000 - - - - - 10,000 - - - - - - 2,000

Loss - - - (10000) - - - - (10000) - - - - - - - 0

Ending - - (8000) - - - - - 0 - - - - - - - - - 2000

ENDING BALANCE :

AAA = (8000)

STOCK BASIS = 0

AEP = 2000

Beg. bal = beginning balance

LTCG = Long term capital gain

3 0
3 years ago
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