Answer:
Steelers Inc.
a) Journal entries:
Sept. 12
Debit Available for Sale Investment $133,200
Credit Cash Account $133,200
To record investments in the common stock of Bengals Inc., 11,110 shares at $12 per share.
Dec. 31:
Debit Unrealized Loss on Available for Sale Investment $22,200
Credit Available for Sale Investment $22,200
To record the fair value of the investment.
b) The unrealized gains and losses are included in other comprehensive income within the equity section of the balance sheet.
The loss will, therefore, be deducted from other comprehensive income.
Explanation:
Investments held for sale are accounted for at fair value. This implies that at the end of any accounting period, the fair value of the investments will be determined. This is usually the market value. Then, adjustments are made in the asset account according to the fair value. There will be recognized either unrealized gain or loss, which are taken to other comprehensive income in the balance sheet under the equity section.
Answer:
Option (C) is correct.
Explanation:
Given that,
Actual direct labor hours = 8,200
Actual rate = $12.40 per hour
Original production = 1,100 units
Actual units produced = 1,000
Labor standards = 7.6 hours per completed unit
standard rate = $13.00 per hour
Labor time variance:
= (Standard hours - Actual hours) × Standard rate
= (1,000 × 7.6 - 8,200) × $13
= 7,800 Unfavorable
Answer: a) an increase in the Equilibrium price of "regular" cars.
Explanation:
It is stated that the automobile companies use their inputs to make either the <em>hybrid cars</em> or the <em>regular cars</em>.
If the price of the <em>Hybrid cars</em> rises sharply, Automobile companies will make more <em>Hybrid cars</em> so as to take advantage of the situation and make more profit.
This would reduce the amount of inputs that they have available for <em>regular cars</em> and so they will make less <em>regular cars. </em>
As this supply of <em>regular cars</em> decreases,the supply curve will shift to the left and the price will increase to cater for this reduction in supply.
Answer:
Statement of Comprehensive Income for 2021;
Net Income = $1,376,000
Other Comprehensive income (loss):-
Foreign Currency Translation Gain (Net of Tax):
= $350,000 - 25% of $350,000
= $350,000 - $87,500
= $262,500
Unrealized losses on investment securities (Net of tax):
= $90,000 - 25% of $90,000
= $90,000 - $22,500
= ($67,500)
Total other Comprehensive income:
= Foreign Currency Translation Gain (Net of Tax) + Unrealized losses on investment securities (Net of tax)
= $262,500 + ($67,500)
= $262,500 - $67,500
= $195,000
Comprehensive Income = Net Income + Total other Comprehensive income
= $1,376,000 + $195,000
= $1,571,000
