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3 years ago

Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.

Business

1 answer:

Masteriza [31]3 years ago

3 0

Answer:

a. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities.

Company B notes $82,300
Company C bonds $603,800
Company X bonds $120,000
Company Z notes $276,000

b. (same as c.)Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.

Dr Company B notes 4,800
Cr Unrealized gain on Company B notes 4,800 (= $82,300 - $77,500)

Dr Unrealized loss on Company C bonds 38,340 (= $603,800 - $642,140)
Cr Company C bonds 38,340

Dr Unrealized loss on Company X bonds 2,100 (= $120,000 - $122,100)
Cr Company X bonds 2,100

Dr Company Z notes 8,100
Cr Unrealized gain on Company Z notes 8,100 (= $276,000 - $267,300)

Explanation:

beginning of the year cost fair value

Company A bonds $534,100 $492,000

Company B notes $159,140 $155,000

Company C bonds $662,400 $642,140

since available for sale assets must be recorded at fair value, we must assume that the company prepared the adjusting entries at the end of the previous year (unrealized gains or losses):

Jan. 29 Sold one-half of the Company B notes for $78,820.

Dr Cash 78,820

Cr Company B notes 77,500

Cr Gain on sale of Company B notes 1,320

July 6 Purchased bonds of Company X for $122,100.

Dr Company X bonds AFS 122,100

Cr Cash 122,100

Nov. 13 Purchased notes of Company Z for $267,300.

Dr Company Z bonds AFS 267,300

Cr Cash 267,300

Dec. 9 Sold all of the bonds of Company A for $524,800.

Dr Cash 524,800

Cr Company A notes 492,000

Cr Gain on sale of Company B notes 32,800

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The return on stockholders’ equity is 28.90%.

<h3>How to calculate the stockholders’ equity?</h3>

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2 years ago

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lee company pays its employees on a graduated commission scale 6% on the first $40,000 sales 7% on sales from $40,001 to $80,000

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Answer: c

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Because it makes even more sense.

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3 years ago

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Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement. N

creativ13 [48]

Answer:

$584,000

Explanation:

Calculation to determine what must their amount of sales be

Using this formula

Amount of Sales = (Fixed costs + Target profit) / Contribution margin percentage

Let plug in the formula

Amount of Sales = [42,400+(40,000+63,600) / (106000/424000)

Amount of Sales =(42,400+103,600) / (106,000/424,000)

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3 years ago

Larry Ellison starts a company that manufactures high-end custom leather bags. He hires two employees. Each employee only begins

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Answer:

12.55 days

Explanation:

Provided information

Number of employees 2

Average production time=1.8 days

Standard deviation=2.7 days

Inter-arrival time= 1 day

Coefficient of variation= 1 day

Standard deviation of inter-arrival time= 1 day

The coefficient of variations

Inter-arrival coefficient of variation

$C_{vi}=\frac {\sigma}{T}$ where $\sigma$ is standard deviation of inter-arrival time, T is inter-arrival time and $C_v$ is coefficient of variation of inter-arrival time

$C_{vi}=\frac {1 day}{1 day}=1$

Production time coefficient of variation

$C_{vp}=\frac {2.7}{1.8}=1.5$

Total utilization time

$U=\frac {T}{n*T_i}$ where T is the time of production, n is number of employees, U is utilization, $T_i$ is inter-arrival time

$U=\frac {1.8}{2*1}=0.9$

Therefore, utilization time by 2 employees is 0.9

Expected average waiting time

$T_e=(\frac {T}{n*T_i})*0.5(C_{vi}^{2}+C_{vp}^{2})*(\frac{U^{\sqrt{2(n+1)}-1}}{1-U})$

Where $T_e$ is expected average waiting time and the other symbols as already defined

Substituting 1.5 for $C_{vp}$ , 1 for $C_{vi}$ , 0.9 for U, 2 for n, 1 for $T_i$ and 1.8 for T

$T_e=(\frac {1.8}{2*1})*0.5(1^{2}+1.5^{2})*(\frac{0.9^{\sqrt{2(2+1)}-1}}{1-0.9})$

$T_e=0.9*1.625*8.583709=12.55367 days$ and rounding off to 2 decimal places we obtain 12.55 days

Therefore, expected duration between order received and beginning of production is approximately 12.55 days

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3 years ago

Schreiber Industries estimates bad debts at 2% of sales. Schreiber began the year with $270,000 of accounts receivable and $38,6

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Answer:

The total amount of account receivable it's $246.400

Explanation:

At the beginning the company had $270.000 in the account receivable and $38.600 of allowance for bad debt, when the company wrote off bad debt, it entry a credit in the Account Receivable and a Debit in hte Allowance for bad debt.

The new balance are $244.400 in the accounts receivables and $12.600 as credit in the allowance for bad debt, with the new sales the company generate an extra account receivable of $15.000, so the net value of Accounts Receivable it's $246.400.

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