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antoniya [11.8K]
3 years ago
7

g purchased a 25% stake in for $486,000 on Jan 2, 2021. On Jan 1, 2021, Satisfactory had a book value of equity on its balance s

heet of $1,944,000. What is the value that Perfection records in it's books on Jan 2, 2021 related to its investment in
Business
1 answer:
stepladder [879]3 years ago
4 0

Answer:

Perfection records in it's books an Investment in Associate of $486,000

Explanation:

Hi, your question has missing information, i tried to look for the full question online but I could not find it.

However, I have prepared below explanation to the problem.

When a firm has investments into another firm of less than 50% voting rights in stake but greater than 20% we say that firm has significant influent in the investee. The firm is said to have an Investment in an Associate.

Investments in Associates are always recorded using the Equity Method of Accounting.

<u>Entries for Investment in Associate are :</u>

Debit :Investment in Associate ($1,944,000 × 25%) $486,000

Credit : Share of profits of associate $486,000

Conclusion :

Perfection records in it's books an Investment in Associate of $486,000

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If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the
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Answer:

yeah it will be worse than ever

Explanation:

in both cases

8 0
3 years ago
During the first month of​ operations, ​, ​Inc., completed the following​ transactions:
forsale [732]

Answer:

General Ledger

Jul 2

Cash $68,000 (debit)

Common Stock $68,000 (credit)

<em>Cash received in exchange for common stock</em>

Jul 3

Supplies $700 (debit)

Equipment $11,800 (debit)

Accounts Payable $12,500 (credit)

<em>Supplies and Equipment purchased on credit</em>

Jul 4

Cash $5,400 (debit)

Service Revenue $5,400 (credit)

<em>Cash received for service rendered</em>

Jul 7

Land $33,000 (debit)

Cash $33,000 (credit)

<em>Cash paid for acquisition of Land</em>

Jul 11

Accounts Receivable $4.100 (debit)

Service Revenue $4.100 (credit)

<em>Service rendered on credit</em>

Jul 16

Accounts Payable $11,800 (debit)

Cash $11,800 (credit)

<em>Settlement of Account Receivable</em>

Jul 17

Advertising Expense $570 (debit)

Cash $570 (credit)

<em>Cash paid for Advertising</em>

Jul 18

Cash $2,000 (debit)

Account Receivable $2,000 (credit)

<em>Cash received from Account Receivable</em>

Jul 22

Water and Electricity Expenses $400 (debit)

Cash $400 (credit)

<em>Cash paid for utilities</em>

Jul 29

Cash $2.700 (debit)

Service Revenue $2.700 (credit)

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Jul 31

Salaries Expenses $2,300 (debit)

Cash $2,300 (credit)

<em>Cash paid for Salaries</em>

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Explanation:

See the Journals and narrations that i have prepared above.

4 0
3 years ago
the spread between the interest rates on bonds with default risk and default-free bonds is called the:
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The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.

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A bond with a default risk is a bond in which the bond issuer can miss scheduled payments of either the coupon or the principal. Bonds issued by private individuals are generally considered to be bonds with default risk.

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To learn more, please check: brainly.com/question/4304080?referrer=searchResults

5 0
3 years ago
With a(n) _______, the full amount of the loan is received when the contract is signed, but only the interest is paid over the l
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6 0
3 years ago
Consider an economy described by the following equations:
Ede4ka [16]

Answer:

a. exchange rate = 1

b. exchange rate = 1.5

Explanation:

(a)  National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1000 = 0

National saving = 750 + 0

= 750

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1000 - 750 = 0

Thus Trade Balance = 0

NX = 0 => NX = 500 – 500e = 0

=> e = 1

Thus exchange rate = 1

(b)

National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1250 = -250

National saving = 750 - 250

= 500

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1250 - 750 = -250

Thus Trade Balance = -250

NX = -250 => NX = 500 – 500e = -250

=> e = 750/500 = 1.5

Thus exchange rate = 1.5

 

8 0
3 years ago
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