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dybincka [34]
3 years ago
13

The trading securities portfolio of Jerome, Inc., had a total cost of $3,000 and a fair value of $2,800 on December 31, which is

the first year it held trading securities. Complete the necessary adjusting entry.
Business
1 answer:
Elina [12.6K]3 years ago
8 0

Answer:

Dr Unrealized Loss - Income $200

Cr Fair value adjustment - trading $200

Explanation

Preparation of the necessary adjusting entry

Based on the information given the appropriate adjusting journal entry is :

Dr Unrealized Loss - Income $200

($3,000 - $2,800)

Cr Fair value adjustment - trading $200

(To recrod adjustment to fair value for trading securities )

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Pat Jones is a college student who is planning some networking opportunities for the current l semester. Pat wanted to look
DaniilM [7]

Answer:

1. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.

2. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.

3. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.

Explanation:

7 0
3 years ago
Tweedie Company issues 11,500 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2014. The stock has a fair value
DENIUS [597]

Answer:

The journal entries are as follows:

(a) (i) on January 1, 2014

Unearned compensation A/c Dr. $5,75,000

       To Common stock (11,500 × 10)                $115,000                              

       To Paid-in Capital in Excess of Par - Common Stock $4,60,000

(ii) On December 31, 2015

compensation expenses A/c(575,000 × 1/5) Dr. $1,15,000

       To Unearned compensation                $1,15,000

(To record the restricted stock)

(b) On July 25, 2018,

common stock A/c Dr. $1,15,000

Paid-in Capital in Excess of Par - Common Stock A/c Dr. $4,60,000

     To compensation expenses  $4,60,000

     To unearned compensation   $1,15,000

(To record the forfeiture)

8 0
3 years ago
And an anonymous survey, 2.5% of your employees say that they are “ready to quit”. You employ 50,000 people. How many are ready
Anit [1.1K]

Answer:

1250

Explanation:

2.5%*50,000=1250

or

50,000*0.025=1250

7 0
2 years ago
A partner that invests money in a business, but does not take an active role in management or assume unlimited liability is best
Arturiano [62]

Answer: Limited partner

Explanation:

The limited partner is part of the owners of a partnership business that doesn't play an active role in supervising daily business operations and whose liability in the business is limited only to the amount of money invested into the business. The limited partner leaves the partnership daily runnings for the active partner.

8 0
3 years ago
emiannual coupon bonds with the same risk (Aaa) and maturity (20 years) as your company's bonds have a nominal (not EAR) yield t
garri49 [273]

Answer:

quarterly coupon payment = $22.25

Explanation:

effective annual interest rate of current bonds = (1 + 9%/2)² - 1 = 9.2025%

if the new bonds will have quarterly payments, then the nominal interest rate should be:

1.092025 = (1 + r/4)⁴

⁴√1.092025 = ⁴√(1 + r/4)⁴

1.02225 = 1 + r/4

0.02225 = r/4

r = 8.9% annual

quarterly rate = 2.225%

quarterly coupon payment = $22.25

4 0
3 years ago
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