Prospectus.
For example, when a company is preparing for an IPO, the prospectus will be given to potential investors (mom & pop, and sophisticated) to give them information on current financial status of the company, growth strategies, current shareholders, directors, etc.
Answer:
$4,800
Explanation:
Data provided in the question:
Cost = $66,000
Accumulated depreciation = $30,000
Book value = Cost - Accumulated depreciation
= $66,000 - $30,000
= $36,000
Now,
Fair value = $48,000 + $12,000
= $60,000
Thus,
Gain = $60,000 - $36,000
= $24,000
Therefore,
Gain to be recognized = $24,000 × [ 12,000 ÷ 60,000 ]
= $4,800
Answer:
The amount of net pay recorded by Hernandez is $380,650
Explanation:
Gross Pay $500,000
Income Tax $63,000
Social security $31,000
Medicare $7,250
Charitable contribution $5,000
Union Dues $10,000
Unemployement Tax $3,100
Net Pay $380,650
Therefore, The amount of net pay recorded by Hernandez is $380,650
Answer:
Dr. Trading securities $4,800
Cr. Unrealized gain on trading securities $4,800
Explanation:
Trading securities are recorded reported on the fair market value. The gain or loss arise from the increase or decrease in the value of trading securities. There is a gain if the price of trading security increases and loss when the price of the trading security decreases. Unrealized gains are reported in the separate section of stockholders equity.
Gain on Trading securities = Fair value of security portfolio - Cost of security portfolio = $46,300 - $41,500 = $4,800
