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nata0808 [166]
3 years ago
7

Mumford Corporation invested $30,000 in marketable securities on December 4. On December 9, it sold some of these investments fo

r $10,000, and on December 18, it sold more of these investments for $5,000. The securities sold on December 9 had cost the company $7,000, whereas the securities sold on December 18 had cost the company $6,000.
a) Record the purchase of marketable securities on December 4.
b) Record the sale of marketable securities on December 9.
c) Record the sale of marketable securities on December 18.
d) Record the necessary fair value adjustment on December 31, assuming that the market value of the company's remaining unsold securities was $20,000.
Business
1 answer:
QveST [7]3 years ago
8 0

Answer:

Mumford Corporation

Journal Entries:

a) December 4:

Debit Investment in Marketable Securities $30,000

Credit Cash $30,000

To record the purchase of marketable securities.

b) December 9:

Debit Cash $10,000

Credit Investment in Marketable Securities $7,000

Credit Gain from sale of marketable securities $3,000

To record the sale of investment and the gain arising from the sale.

c) December 18:

Debit Cash $5,000

Debit Loss from sale of securities $1,000

Credit Investment in marketable securities $6,000

To record the sale of marketable securities and the arising loss.

d) December 31:

Debit Investment in Marketable Securities $3,000

Credit Unrealized Gain $3,000

To record the unrealized gain on marketable securities.

Explanation:

a) Investment in marketable securities = $30,000 on December 4

Cost of units sold on December 9 = $7,000; selling price =$10,000

Cost of units sold on December 18 = $6,000; selling price = $5,000

b) Mumford will record an unrealized gain to the value of $3,000 because the value of the marketable securities has increased but the asset is yet to be sold for cash.  When the asset is eventually sold, it becomes a realized gain.

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marusya05 [52]

Answer:

Allocated MOH= $100,800

Explanation:

<u>First, we need to calculate the predetermined allocation rate for ordering and receiving:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Ordering and receiving= 504,000 / (700 + 1,080 + 1,720)

Ordering and receiving= $144 per order

<u>Now, we allocate to product AKM:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 144*700

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5 0
2 years ago
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Y_Kistochka [10]

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Explanation:

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7 0
4 years ago
What is a major function of both retail and business banks?
IRISSAK [1]

Answer:

C.

Explanation:

Retail banking is a banking system that deals directly with retail consumers. Retail banking is responsible for providing financial aid to the general population. The major function of retail banking includes providing financial aid, checking and savings accounts.

Business banks, on the other hand, are also a part of the banking industry. It specifically deals with corporates and businesses, ranging from small-sized businesses to large-sized corporates. The major function of corporate banking or business banking is also to provide financial aid, checking and savings accounts.

Therefore, option C is the correct answer.

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3 years ago
Which of the following is not true about the national income identity given by the equation: S +(T - G) = 1 + CA?
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Answer:

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Cheers!

4 0
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Answer:

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Explanation:

a) Data and Calculations:

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6 0
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