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mamaluj [8]
3 years ago
15

Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end

cost and fair values for its portfolio of these debt investments follow.
Portfolio of Trading
Securities Cost Fair Value
Tesla Bonds $15,300 $ 11,475
Nike Bonds 24,400 25,620
Ford Bonds 6,100 4,880

Prepare journal entries to record the December 31 year-end fair value adjustment for the above debt securities.
Business
1 answer:
kow [346]3 years ago
8 0

Answer:

Explanation:

business model of the securities is to earn capital gain and are classified as through fair vlaue through profit and loss

such securities are revalued at reporting date any gain are loss is recognized in profit and loss account.

Security name               Carrying Amount      Fair value         (Gain)/Loss

Telsa Bond                          15300                        11475                 3900                

Nike Bonds                          24400                       25620               -1220

Ford Bonds                          6100                           4880                  1220

the securities will recorded at fair value in the balance sheet and their respective gain loss will be recorded in profit and loss by making these entries

Entries

Loss on revaluation of investment           3900

                     Investment in Telsa bond             3900

To record the loss on telsa investment.

Nike Investment     1220

       Gain on revaluation of investment   1220  

To record the Gain on Nike investment.

Loss on revaluation of investment           1220

                     Investment in Ford bond             1220

To record the loss on Ford investment.

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Sergio039 [100]

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Private sector through the earning and spending of income

Answer: Option D.

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8 0
3 years ago
Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answe
GaryK [48]

Answer:

Option 1 and 2

Explanation:

Complete Question

Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers?

CHECK ALL THAT APPLY.

  1. High school athletes stop shopping there.
  2. The inventory of sports socks goes unsold.
  3. Publicity for the store declines.
  4. Profits decline because dress shoes cost less than sneakers

Solution

Sole Sister Shoe Store chooses to sell dress shoes over sneakers because  the customers of sneakers stopped shopping from the store. Sneakers are mainly purchased by the high school athletes over any other footwear. Now, they stopped shopping and hence  Sole Sister Shoe Store started selling dress shoes

Also, sports socks' inventory is unsold indicating the reduction in sale of sneakers and hence the Sole Sister Shoe Store started selling dress shoes

7 0
2 years ago
What do you mean by parent and host company?​
Anna11 [10]

Answer:

What is meant by parent company?

A parent company is a single company that has a controlling interest in another company or companies. Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger.

Explanation:

What Is a Parent Company?

A parent company is a company that has a controlling interest in another company, giving it control of its operations

8 0
2 years ago
Read 2 more answers
Anderson Corporation has purchased a group of assets for $16,600.
Sati [7]

Answer:

C.$ 8 comma 798$8,798

Explanation:

Given,

Purchase value = $16,600

Considering the relative values

Relative value of land = $6,500

Total relative value = 6500 + 2400 + 3400

                                = $12,300

Using the relative value to allocate the purchased value of the land

Purchased cost of land = (6500/12300) × 16,600

                                       = 0.53 × 16,600

                                      = $8,798

The amount that would be debited to the Land is $8,798 Option C

4 0
3 years ago
In silicon valley, california, it is not unusual for highly skilled employees to stay at one company for about three years. thes
Anuta_ua [19.1K]

Answer:

Type A

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William Ouchi developed the Japanese management Theory Z which served as a reference for understanding the great economic boom in Asian countries.

Type A organizations focus on individual performance and accountability, they generally rely on short term evaluation periods and rapid promotions of high achievers and encourages personal efficiency.

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