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hammer [34]
3 years ago
12

Godfrey Corporation holds, as a long-term investment available-for-sale securities costing $69,000. At December 31, 2017, the fa

ir value of the securities is $64,100. Show the financial statement presentation of the available-for-sale securities and related accounts. Assume the available-for-sale securities are noncurrent.
GOLDFREY CORPORATION
Balance Sheet Entry field with correct answer
December 31, 2017
Entry field with correct answer Investments
Entry field with correct answer Investment In Stock, at fair value
Entry field with correct answer 64100
Entry field with correct answer Stockholders' Equity
Entry field with correct answer Less :
Entry field with incorrect answer now contains modified data
Entry field with correct answer 4900
Business
1 answer:
kodGreya [7K]3 years ago
5 0

Answer:

Godfrey Corporation

GOLDFREY CORPORATION

Balance Sheet (Partial)

December 31, 2017

Noncurrent assets:

Investments:

Investment In Stock, at fair value  $64,100

Stockholders' Equity:

Common stock

Retained earnings

Less :

Unrealized loss  $4,900

Explanation:

a) Data and Calculations:

Long-term investment available for sale:

Cost =               $69,000

Fair value             64,100

Unrealized loss  $4,900

b) The correct entry would have been to reduce the net income by the unrealized loss.  However, for simplicity, this is showed as a reduction of the Retained Earnings in the balance sheet.

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Managerial accounting information for a company
Bad White [126]

Answer:

Correct answer is b. relates to subunits ot the entity and may be very detailed.

Explanation

Managerial accounting involves collecting, storing, analyzing, and reporting information about the operations, activities and finances of a business. These reports are generally used by the managers of a business, rather than by any external entities, such as shareholders or lenders. The purpose of this accounting is to facilitate manager from senior to line level to make informed decision.

So in order to run the business smoothly this information/accounting is required  to be very detail and covering each and every aspect of the entity.

5 0
3 years ago
David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding
Marrrta [24]

Answer:

Cost of equity = 14.43%

Explanation:

Weigheted Average cost of capital is computed using the formula below:

WACC = (Wd×Kd)  + (We×Ke)

           Kd= aftre tax cost of debt= 12%× (1-0.4)= 7.2%

           Wd =Proportion of debt= 40%

           We = proportion of equity = 60%

            Ke= cost of equity.

let the cost of equity be "y"

WACC = 11.54

11.54 = (40%× 7.2%) + (60% × y)

0.1154  = 0.0288 + 0.6y

0.1154 - 0.0288 = 0.6y

y =(0.1154 - 0.0288)/0.6

y = 0.1443 × 100

y =14.43%

Cost of equity = 14.43%

         

8 0
3 years ago
According to the insurance research council, 14% of u.s. drivers are uninsured. a random sample of seven drivers was selected. w
navik [9.2K]
I think the answer is 0.0620
8 0
3 years ago
Perrette Motor Company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt engine
kow [346]

Answer:

Perrette Motor Company

Computation of the cost per equivalent unit for materials and conversion for the month:

1. Material cost per equivalent unit: $1,100

2. Conversion cost per equivalent unit: $1,350

Explanation:

a) Data and Calculations:

                                Units     % of completion          Equivalent unit

                                          Materials Conversion    Materials Conversion

Beginning WIP        120         50%        50%                 60                60

a) Started and

Completed             530        100%       100%             530               530

b) Ending WIP        220          50%        30%              110                  66

Equivalent units                                                        640                596

Cost of production:

                                       Materials      Conversion

Beginning WIP              $68,000          $73,200

Started & completed    636,000           731,400

Total cost                    $704,000       $804,600

Equivalent units               640                   596

Cost per equivalent unit $1,100             $1,350

b) When calculating the equivalent units under the weighted average process costing method, the units beginning work-in-process are not taken into consideration, but the costs are.

5 0
3 years ago
If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.
FromTheMoon [43]

A decline in the growth rate of labor productivity means that the growth rate in the number of goods or services that can be produced by 1 hour of work has declined.

<h3>What is the labor productivity growth?</h3>

This is used to refer to the growth in the output. This is measured by increase in workers productivity per hour.

It is what causes them to produce more than they would given the number of work hours available.

Read more on labor productivity here:

brainly.com/question/6430277

#SPJ1

5 0
2 years ago
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