Answer:
2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue.
Explanation:
Whenever the investment is made in shares of a company where the investor can exercise significant influence, then equity method is used.
Under equity method, it is that all incomes of investee company are incomes of investor company.
And any amount of income received as a distribution is deducted from the carrying value of investment, as reduces the cost of investment.
Thus, any dividend received is debited and investment account is credited.
Dividend is never treated as dividend revenue.
Thus, option 2 is not correct.
Increases and supply does not change, when demand does not change and supply increases.
Answer:
Explanation:
Available for sale securities are required to be reported at fair value.
Hence the difference between amortized cost and fair value is required to be transferred to other comprehensive income.
The amount of credit loss that Marin should report on this available for sale security at 31-12-2020
= $52,000 - $44,000
= $8,000
Answer:
total liabilities = $169,008
Explanation:
total liabilities:
- Accounts Payable: $19,207
- Discount on Bonds Payable: ($7,000) ⇒ contra liability account
- Sales Tax Payable: 3,512
- FICA Tax Payable: 3,200
- Bonds Payable: 100,000
- Note Payable, due in two years 1,709
- Unearned Service Revenue 30,500 ⇒ must be reported as a liability
- Salaries and Wages Payable 17,880
to determine the total liabilities we just have to add both current and long term liabilities, and subtract any contra liability accounts = $176,008 - $7,000 = $169,008
