Answer:
Option A. Debit unrealized holding gain or loss for $400,000 and credit estimated liability on purchase commitment for $400,000.
Explanation:
According to the Accounting Principles losse are always debited and gains are always credited. This means that the notional loss or gain due to the decrease or increase in the value of the contract must be recorded in the current year by debit or credit respectively.
The notional gain or loss at the end of fiscal year, can be calculated by taking the difference of the Agreed value and the current market value of the contract.
The agreed value of the contract is $2,000,000 and the Market Value is $1,600,000, which means that the unrealized losses are $400,000 ($2,000,000 - $1,600,000).
The double entry would be recording the losses of $400,000 due to technologically decrease in the value:
Dr Unrealized Loss $400000
Cr Estimated liability on Purchase Commitment $400000
Answer:
Year 1 = $387
Year 2 = $516
Explanation:
Loan has been granted on 1 April in Year 1 i.e. for a period from 1 April to 31 December = 9 months.
Interest for year 1 @6% = $8,600 X 
= $387
Interest for year 2 will be from 1 January to 31 December =
$8,600 X 
= $516
Therefore interest revenue to be reported by Rosewood Company will be as follows
Year 1 = $387
Year 2 = $516
Traditional banking- you can secure your deposit because you personally banked it..
while
online banking- for me you can't 100% sure your secured because you know there where so many fake agents out there but it's good benefits are you are just sitting and surfing the net and you dont won't be hustle anymore
Answer: $12,000
Explanation:
Only the $12,000 will be reported in Statement of Activities ( the financial statement used to report revenues and expenses for governmental and business-type activities) as a change in net position for business-type activities.
Why?
The Water Entreprise Fund is the only listed fund type listed that would fall under BUSINESS TYPE because it is an ENTREPRISE Fund. The Motor Pool Internal Service falls under GOVERNMENT ACTIVITIES and the Pension Find is only displayed in the Fund Financial Statements.
Because the Water Entreprise Fund is the only fund here concerned with BUSINESS TYPE activities, it's rise by $12,000 is what will be reported as the Net Change.
Answer: D. There was a one-way flow of wealth favoring the colonizers.
Explanation:
With the Colonists simply taking resources and not paying the colonies for it, there was a one way flow of wealth which favored them alone. Had the colonists paid for the goods and then processed them for resale (as developed countries do now), there would have been at least some sort of wealth flowing back to the colonies for the resources they possessed. The Colonists were essentially not paying for raw material inputs for production and simply reaped all the benefits after processing.
