Answer:
a. Journal Entry:
Investments in Debt securities (Dr.) $1500
Fair Value of Debt securities(Cr.) $1500
b. Equity Section:
Common Stock $65,000
Retained Earnings $22,000
Treasury Stock $13,400
Revaluation of Debt securities $1,500
Explanation:
Investments in AFS Debt securities 40,000
Fair value of the investment on 12/31/2018 is $41,500
The difference between fair value and reported value will be adjusted through journal entry. The difference is of $1500 (41,500 - 40,000) is the revaluation amount of the securities.
Answer:
To reverse the transaction, the journal entry is:
Date Account title Debit Credit
March 4, 2021 Accounts receivable - Megan Gray $5,800
Allowance for doubtful accounts $5,800
To record the receipt of cash:
Date Account title Debit Credit
March 4, 2021 Cash $5,800
Accounts receivable - Megan Gray $5,800
It is known as a Tradable occupation. The tradable area of a nation's economy is comprised of the business areas whose yield regarding merchandise and enterprises are exchanged globally, or could be exchanged universally given a conceivable variety in relative costs.
Answer:
45 days
Explanation:
Data provided
Credit Sales = $400,000
Accounts receivable turnover ratio = Credit Sales ÷ Average Accounts Receivables
= $400,000 ÷ ($100,000 + 0) ÷ 2
= 8 times
Average number of collection days = 360 ÷ Accounts Receivable turnover ratio
= 360 ÷ 8
= 45 days
Therefore for computing the average number of collection days we simply divide accounts receivable turnover ratio by 360.