In which step of the production process are

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The compan

Digiron [165]

Answer and Explanation:

a)

Journal entries

Mar.31

Dr Investment in Distribution Transformers shares $ 400,000.00

Cr Cash $ 400,000.00

Sept.1

Dr Investment in American Instruments bonds $900,000.00

Cr Cash $900,000.00

Sept.30

Dr Cash ($400,000 x 8%/2) $ 16,200.00

Cr Investment revenue $ 16, 000.00

Oct.2

Dr Cash $ 425,000.00

Cr Investment in Distribution Transformers $ 400,000.00

Cr Gain on sale of investments $ 25,000.00

Nov.1

Dr Investment in M&D Corporation shares $1,400,000.00

Cr Cash $1,400,000.00

Dec.31

Dr Investment revenue receivable $ 30,000.00

Cr Investment revenue ($900,000 x 10% x 4/12) $ 30,000.00

Dec.31

Dr Investment revenue receivable $ 14,000.00

Cr Investment revenue ($1,400,000x 6% x 2/12) $ 14,000.00

Dec.31

Dr Fair value adjustment (calculated below) $ 10,000.00

Cr Net unrealized holding gains and losses–OCI $ 10,000.00

Available for sale securities Cost Fair market Value Profit/Loss

M & D Corporation shares

$1,400,000.00 $ 1,460,000.00 $ 60,000.00

American Instruments bonds $900,000.00 $850,000.00 ($50,000.00)

Totals $2,300,000.00 $2,310,000.00 $ 10,000.00

b)

Income Statement

Investment Revenue = $16,200 + $30,000 + 14,000 $ 60,200.00

Gain on sale of investments $ 25,000.00

Statement of comprehensive income

Net unrealized holding gains and losses on investments $ 10,000.00

Balance sheet:

Current Assets

Investment revenue receivable $ 30,000.00

Securities available-for-sale $2,300,000.00

Add: Fair value adjustment $ 10,000.00 $2,310,000.00

Shareholders’ Equity

Net unrealized holding gains and losses on investments $ 10,000.00

6 0

3 years ago

When offering financial products to clients, you may:

Anton [14]

Answer:

d. All of the above.

Explanation:

All the three actions are appropriate actions for when offering financial products to clients.

a) is appropriate because prior clients are likely to have most of the information in the company's records.

b) is appropriate because as you gain experience, you become more knowledgeabe and intuitive about which clients should be offered a determined product.

c) is appropriate because as a financial worker, it is your duty to decline requests for financial products from clients who do not meet the given criteria.

6 0

2 years ago

Last year, Stumble-on-Inn, Inc. reported an ROE of 19 percent. The firm's debt ratio was 60 percent, sales were $34 million, and

Sonja [21]

Stumble-on-Inn, Inc.'s net income for last year is $3,359,200.

<h3>Data and Calculations:</h3>

ROE (Return on Equity) = 19%

Debt ratio =60%

Sales = $34 million

Capital intensity = 1.30 times

Assets = $44.2 million ($34 million x 1.30)

The Total Debt = $26,520,000 ($44,200,000 x 60%)

The Equity = $17,680,000 ($44,200,000 - $26,520,000)

The Net income = $3,359,200 ($17,680,000 x 19%)

Thus, Stumble-on-Inn, Inc.'s net income for last year is $3,359,200.

Learn more about Net Income at brainly.com/question/21271689

5 0

2 years ago

How does coved-19 effect in how mangers make decisions?

Anna [14]

Answer:

1. not all people want to wear a mask when they walk into their store

2. a lot of their workers probaly quit or have corona, this would make it harder to make decisions with not a lot people to work!

Explanation:

7 0

3 years ago

Read 2 more answers

You are a self-employed profit-maximizing consultant specializing in monoplies. Five single-price, profit-maximizing monopolies

inna [77]

Answer:

Firm A

Firm A is charging a cost of $3.90 for every unit. The normal expense is the all out cost separated by amount which ends up being $3.70 per unit. Presently its minor income is $3.00 per unit and negligible expense is $2.90 per unit. The imposing business model firm can't create enough yield in light of the fact that the minor income surpasses the minimal expense.

Consequently, Firm A is encouraged to expand its yield. This will bring increasingly net income and get it a higher benefit. The yield should increment till minimal income and negligible expense gets equivalent.

Firm B

Firm B is charging a cost of $5.90 for every unit. The normal expense is $4.74 per unit. Presently its peripheral expense is $5.90 per unit. Note that the syndication firm is charging a value which is equivalent to the negligible expense. Consequently, it is carrying on seriously. by delivering more and charging less.

Consequently, Firm An is encouraged to diminish its yield. This will expand cost more than the expansion in cost with the goal that it acquires a higher benefit. The yield should diminish till minimal income and minor expense gets equivalent.

Firm C

Firm C is charging a cost of $11.00 for every unit. The normal expense is the all out expense is $11.90 per unit. Minimal income is $9.00 per unit and minor expense is $9.00 per unit. The imposing business model firm is delivering a benefit expanding yield on the grounds that the minor income rises to the peripheral expense. Nonetheless, it is bearing misfortunes since normal expense is higher than cost.

Thus, Firm C is encouraged to stay at the present degree of yield. It can close down over the long haul if misfortunes keep on happening. This is on the grounds that it can't increment or diminishing its yield as it will just alumni the misfortunes.

Firm D

Firm D is charging a cost of $35.90 for every unit. The normal expense is additionally 35.90 per unit. The minor income is $37.90 per unit and negligible expense is $37.90 per unit. The imposing business model firm is creating a benefit amplifying yield on the grounds that the minor income approaches the peripheral expense. Strangely, its cost is not as much as its negligible income which is beyond the realm of imagination.

Thus, Firm D has fouled up estimations with respect to its cost. Thoughtfully, the cost ought to consistently be higher than the minimal income or at most extreme it tends to be equivalent to minor income. It ought to return and recalculate the cost.

Firm E

The information identified with the minor income and minimal expense for Firm E isn't given. The cost charged is $35.00 per unit. The normal expense is at its base level and is equivalent to $33.00 per unit. This data isn't adequate to distinguish if the firm is working at a benefit boosting level.

Therefore, Firm E is encouraged to stay at the present degree of yield.

6 0

3 years ago