Answer:
Total Unrealized gain = $50,000
<u />
Explanation:
ABC Co. Bonds - Unrealized holding $50,000
gain in 2021 ($400,000 - $350,000)
DEF Co. Bonds - Unrealized holding ($5,000)
loss in 2021 ($60,000 - $65,000)
GHI Bonds - Unrealized holding $5,000
gain in 2021 ($150,000 - $145,000) <u> </u>
Total Unrealized gain <u>$50,000</u>
<u></u>
Unrealized holding = Fair value (12/31/2021) - Amortized cost (12/31/2021)
Answer:
10.7%
Explanation:
2% of the loan value added to the 8.7% of the loan value that you're paying in interest is ...
2% + 8.7% = 10.7%
The effective rate for this 1-year loan is 10.7%.
Answer:
b. deposits in transit
Explanation:
Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smooth manner.
There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.
The adjusting entry of interest earned is
Cash A/c Dr
To Interest income A/c
(Being interest is earned)
Likewise, for The fee for collection
Bank charges A/c
To Cash A/c
(Being fees is charged)
And for NSF check of customer, it would be
Account receivable A/c Dr
To Cash A/c
(Being the adjusting entry is made)
So, for this the adjusting entry is made but for Deposit in transit , no adjusting entry would be made.
Explanation:
The purpose of preparing a Bank Reconciliation Statement is to detect any discrepancies between the accounting records of the entity and the bank besides those due to normal timing differences. Such discrepancies might exist due to an error on the part of the company or the bank.
Answer:
transaction
Explanation:
Transaction is the confirmation that an exchange has taken place. Before a transaction could be consumated, there must be at least two or more persons that are involved. Transaction means that a deal has been made such as receiving value for payment of product purchased.
With regards to the above, transaction is the right answer because after money has been exchanged with the products purchased, the confirmation that the exchange actually took place is transaction.