1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SSSSS [86.1K]
3 years ago
15

Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December

31, Year 2, the Investment in Searing bonds account had a debit balance of $500,000, and the bonds were purchased at par so the $500,000 equals amortized cost. The Fair Value Adjustment account had a debit balance of $20,000. On December 31, Year 3, the amortized cost of those bonds has not changed, but the fair value of those bonds was $515,000. Which of the following will be included in the related journal entry dated December 31, Year 3?
a. Debit to Fair value adjustment for $5,000
b. Credit to Fair value adjustment for $5,000
c. Debit to Fair value adjustment for $25,000
d. Credit to Fair value adjustment for $25,000
Business
1 answer:
Paul [167]3 years ago
7 0

Answer:

b. Credit to Fair value adjustment for $5,000

Explanation:

Particulars                                Amount

Beginning balance of fair value adjustment   $20,000

Less: Unrealized gain on Dec 31, year 3         <u>$15,000</u>  ($515,000-$500,000)

Credit to Fair value adjustment                      <u>$5,000</u>

So, Credit to Fair value adjustment for $5,000 will be included in the related journal entry dated December 31, Year 3.

You might be interested in
Casey Electronics has a piece of machinery that costs $300,000 and is expected to have a useful life of 6 years or 40,000 hours.
kozerog [31]

Answer:

None of the given options.

Depreciation expense for year 1 would be $37,500.

Explanation:

Cost = $400,000

Residual value = $50,000  

Expected hours = 40,000

Working hours (year 1) = 6,000 hours  

Now,  

Depreciation per hour = \frac{Cost-Residual Value}{Expected hours}  

Depreciation per hour = \frac{300,000 - 50,000}{40,000}  

Depreciation per hour = \frac{250,000}{40,000}  

Depreciation per hour = $6.25

Depreciation expense (year 1) = Depreciation per hour × Working hours (year 1)

Depreciation expense (year 1) = $6.25 × 6,000

Depreciation expense (year 1) = $37,500

4 0
3 years ago
Steaks n’ Fries Restaurant Company’s decision makers view a particular risk in the consumption of Steaks n’ Fries’ products as o
sasho [114]

Answer:

The correct option is D, outcome-based ethics.

Explanation:

Duty-based  ethics preaches the idea that one should be seen doing the right thing at all times regardless of the consequences of one's actions, it is unlike the utilitarian approach to ethics where what is wrong or right is a function of having the greatest good for the greatest number of people not minding whether the approach used is wrong or right.

Corporate social responsibility involves the additional efforts put in by corporations in  a bid to give back to society.

Religious ethical principles is about concluding on right or wrong using the lenses of religion.

Outcome-based ethics is a sharp contrast to duty-based ethics, as the outcome or consequence is what justifies the moral right or wrong. in other words the end justifies the means.

8 0
2 years ago
Studdard Controls recently declared a quarterly dividend of $1.25 payable on Thursday, April 25, to holder of record of Friday,
elena-14-01-66 [18.8K]

Answer:

April 11th

Explanation:

the dividends will be paid to the owner of the share one day before the record.  This is defined asthe Ex-date ofthe dividends.

DISCLAMER

Assuming it refers to 2019 Apil 12th

the previous business day will be April 11th (we should liook into the calendar and avoid counting Friday and saturdays

for the year 2019 April 12th is a friday so it is okay to define it as April 11th

7 0
3 years ago
Which of the following statements concerning the cash budget is CORRECT? a. Depreciation expense is not explicitly included, but
Ostrovityanka [42]

Answer:

a. Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments.

Explanation:

The cash budget is the budget that represents the receipts and payment of transactions held in cash

It includes the interest and dividend payment as it shows the outflow of cash if payment is made in cash

Moreover, it also affects the DSO and includes cash inflows with related to the long term sources such as issuance of bonds

But as we know that the depreciation is a non cash expense so it not much included but its effects are projected in the payment of tax

7 0
3 years ago
The following partially completed process cost summary describes the July production activities of Ashad Company. Its production
xeze [42]

Answer:

Units Transferred Out $ 663750

Work In Process Ending $ 30440

Direct Materials Costs  $ 11.5 per EUP   Conversion  Costs$6.2 per  EUP

Explanation:

Ashad Company

Weighted Average Method

Cost Of Production Report

Equivalent Units of Production

                                                      Direct Materials           Conversion

Units transferred out                       37,500 EUP                 37,500 EUP

<u>Units of ending work in process      2,000 EUP                    1,200 EUP</u>

<u>Equivalent units of production          39,500 EUP                38,700 EUP</u>

Costs Added

                                                    Direct Materials           Conversion

Costs of beginning work in

process                                               $13,450                    $1,860

<u>Costs incurred this period               440,800                      238,080</u>

<u>Total costs                                       $454,250                   $239,940 </u>

<u />

Costs per EUP

                                                Direct Materials           Conversion

                                $454,250/ 39,500 EUP         $239,940/38,700 EUP

                                     =  $ 11.5 per EUP                        = $6.2 per  EUP

Dividing the costs with EUP gives cost per EUP.

Costs Accounted For

Units Transferred Out $ 663750

Materials = $ 11.5 * 37500=$  431250

Conversion= $ 6.2 * 37500=$ 232500

Total = $ 663750

Work In Process Ending $ 30440

Materials = $ 11.5 * 2000=$  23000

Conversion= $ 6.2 * 1200=$ 7440

Total = $ 30440

Now adding the costs of Transferred out units and the ending work in process inventory equals the total of the costs added.

$ 663750+$ 30440 = $454,250 + $239,940

$ 694190 = $ 694190

8 0
2 years ago
Other questions:
  • Zipcar wants to evaluate the company's service quality by measuring the area between a customer's expectations of desired servic
    8·1 answer
  • All else equal, a firm would prefer to have a higher gross margin. <br> a. True <br> b. False
    12·1 answer
  • Highland Industries makes custom yachts using a job cost accounting system. In anticipation of a busy year for 2019, Highland’s
    13·1 answer
  • Account ing 3-5A page 125<br>what the Answer please?
    7·1 answer
  • Askew Company uses a periodic inventory system. The June 30, 2018, year-end trial balance for the company contained the followin
    13·1 answer
  • Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20 per pound and costs $15.75
    5·1 answer
  • When vertical analysis is performed: a. ratios are used to detect fraud b. changes in significant balance totals are examined c.
    15·1 answer
  • What do you mean by final account? Mention its objectives​
    15·2 answers
  • Please help me I don't really understand
    10·1 answer
  • What would best explain why the equilibrium price of pink salmon decreased and the equilibrium quantity increased?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!