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aliya0001 [1]
3 years ago
12

Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its De

cember 31, 2020, income statement Hobson reported a net unrealized holding loss of $15,500 on these securities. Pertinent data at the end of June 2021 is as follows:
Security Cost Fair Value
X $371,000 $343,500
Y 185,000 162,400
Z 424,000 407,800

Required:
What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021?
Business
1 answer:
Wewaii [24]3 years ago
3 0

Answer:

$50,800

Explanation:

Security     Cost       Fair value     Gain(loss)

X              371,000    343,500        -27,500  

Y              185,000     162,400        -22,600  

Z              <u>424,000</u>    <u>407,800</u>        <u>-16,200 </u>

Total        <u>980,000</u>    <u>913,700</u>         <u>-66,300</u>

Unrealized holding loss on Income statement ended June 30,2021 = $66,300 - $15,500 = $50,800

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Markham Publishing is known for its consultative buying center culture. Recognizing this corporate culture, someone attempting t
padilas [110]

Answer: take into consideration all the members.

Explanation: If someone is attempting to sell the Markham publishing, then it should take into consideration all the factors that could affect each individual in the buying center, but the factors affecting the decision maker should be given special consideration.

Thus, attention to all members should be given while making any decision.

3 0
3 years ago
A manufacturing company applies factory overhead based on direct labor hours. at the beginning of the year, it estimated that fa
slamgirl [31]

Answer:

The amount of underapplied manufacturing overhead at the end of the year is $1200.

Explanation:

Total estimated $360,000/est

direct labour hours 45000 = $8x (Actual Dl hours) 47000

                                             = $376,000

Actual Overhead worked = $377,200 - $376,000

                                           = $1200 underapplied

Therefore, The amount of underapplied manufacturing overhead at the end of the year is $1200.

7 0
3 years ago
The stockholders’ equity accounts of Indigo Corporation on January 1, 2017, were as follows.
Lubov Fominskaja [6]

Answer:

Indigo Corporation

Journal Entries:

Feb. 1:

Debit Cash Account with $60,000

Credit Common Stock with $40,000

Credit Additional Paid-in Capital with $20,000

To record the issue of 10,000 shares of common stock, par $4 at $6 each.

March 20:

Debit Treasury Stock with $8,000

Debit Additional Paid-in Capital with $6,000

Credit Cash Account with $14,000

To record the repurchase of 2,000 shares of treasury stock at $7 each.

October 1:

Debit Dividends - Preferred Stock with $35,000

Credit Dividends Payable with $35,000

To record preferred stock dividends declared.

November 1:

Debit Dividends Payable with $35,000

Credit Cash Account with $35,000

To record cash payment of dividends.

December 1:

Debit Dividends - Common Stock with $249,000

Credit Dividends Payable with $249,000

To record $0.50 per share common stock dividend.

December 31:

Debit Dividends Payable with $249,000

Credit Cash Account with $249,000

To record payment of dividend.

Debit Net Income with $550,000

Credit Retained Earnings with $550,000

To record the transfer of net income to Retained Earnings.

Explanation:

a) Whereas $60,000 cash was received for the issue, only $40,000 (10,000 x $4) is credited to Common Stock.  The additional of $20,000 is credited to Additional Paid-in Capital.  This shows that the shares were issued above their par value.

b) When 2,000 shares of treasury stock were reacquired at a total cost of $7 per share, the Treasury Stock account is debited with the par value of $4 per share ($8,000).  The above par value difference is taken to the Additional Paid-in Capital account as a debit.

c) Dividends on preferred stock was prorated for 10 months, from January to October.  This is because the percentage dividend is for a year.

d) Dividends on common stock would not be prorated since they are based on annual percentages like preferred stock.  Dividends on the common stock is, therefore, calculable on the outstanding balance.  

e) Treasury Stock is a contra account to the Common Stock as it reduces the balance of common stock outstanding.  The outstanding balance of Treasury Stock increased to 12,000 (10,000 + 2,000).

f) Outstanding common stock reduced from 500,000 shares to 498,000 (500,000 + 10,000 - 12,000).  The additional 10,000 represented the new issue and the 12,000 represented the Treasury Stock.

5 0
2 years ago
PC​ Bell, a computer manufacturer that sells computer systems directly to​ customers, buys a computer chip for ​$150​, software
Stella [2.4K]

Answer:

The price is $1,540      

Explanation:

The reason is that the profit share is $1,100 and the cost includes computer chip, software and printer which are worth $150, $250 and $40.

The price can be calculated using the following formula:

Price - Cost = Profit

Here profit is $1100 and cost is $440 (150+250+40)

By putting the values we have:

Price - $440 = $1100

Price = $1100 + $440 = $1540

6 0
2 years ago
the clause in a mortgage that best describes the requirement of the mortgagee to execute a satisfaction of mortgage when the not
pashok25 [27]

The clause in a mortgage that best describes the requirement of the mortgagee to execute a satisfaction of mortgage when the note has been fully paid is <u>defeasance</u>

<u></u>

<h3>What Is Defeasance?</h3>

When the borrower sets aside cash or bonds big enough to pay the obligation, the contract's defeasance clause renders the bond or loan worthless on the balance sheet. The outstanding debt and cash balance on the balance sheet are equal, thus they do not need to be reported because the borrower sets aside funds to pay down the bonds.

Buying commercial real estate is one instance of using defeasance. Due to commitments to bondholders having a stake in the commercial mortgage-backed securities (CMBS) that houses the loan, commercial loans may have hefty prepayment penalties in contrast to home mortgages.

To learn more about defeasance from given link

brainly.com/question/17253783

#SPJ4

5 0
2 years ago
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