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
nalin [4]
2 years ago
14

Novak Corporation purchased 380 shares of Sherman Inc. common stock for $12,900 (Novak does not have significant influence). Dur

ing the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Novak's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)
Business
1 answer:
harkovskaia [24]2 years ago
7 0

Answer:

A. Dr Equity Investments (Trading)$12,900

Cr Cash $12,900

B. Dr Cash $1,235

Cr Dividend Revenue $1,235

C. Dr Fair Value Adjustment (Trading) $1,350

Cr Unrealized Holding Gain or Loss-Income $1,350

Explanation:

A. Preparation of Novak's journal entries to record the purchase of the investment

Dr Equity Investments (Trading)$12,900

Cr Cash $12,900

B. Preparation of Novak's journal entries to record the dividends received

Dr Cash $1,235

($3.25 per share*380)

Cr Dividend Revenue $1,235

C. Preparation of Novak's journal entries to record the fair value adjustment

Dr Fair Value Adjustment (Trading) $1,350

Cr Unrealized Holding Gain or Loss-Income $1,350

[($37.50 per share*380)-$12,900]

You might be interested in
What is the economic order quantity if annual demand is 100 units, the order placement cost is $25, and the holding cost per uni
ra1l [238]

The  economic order quantity if annual demand is 100 units is: 10 units.

<h3>Economic order quantity</h3>

Using this formula

Economic order quantity =√2×Annual demand× Order placement cost/ Holding cost

Let plug in the formula

Economic order quantity=√2×100×$25/$50

Economic order quantity=√5,000/50

Economic order quantity=√100

Economic order quantity=10 units

Inconclusion the  economic order quantity if annual demand is 100 units is: 10 units.

Learn more about  economic order quantity here:brainly.com/question/14625177

5 0
2 years ago
You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.0
Gre4nikov [31]

Answer:

Answer for the question:

You own a bond with a par value of $1,000 and a coupon rate of 8.50% (semiannual coupon). You know it has a current yield of 7.00%. What is its yield to maturity? The bond has 6 years to maturity. Current Yield = (annual payment / price). (hint: solve for price to answer the question). Group of answer choices

is given in the attachment.

Explanation:

5 0
3 years ago
__________ is the manufacturing strategy that has the shortest / fastest lead time (i.e., the manufacturing strategy that will p
borishaifa [10]

Answer:

The answer that you need is: MTS

5 0
2 years ago
Why might you complete a 1040 instead of a 1040ez?
Liula [17]
D none of the above
8 0
2 years ago
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of ber
Firlakuza [10]

Answer:

SHEILA

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Sheila's opportunity cost in producing berries = 10/40 = 0.25

Jim's opportunity  cost in producing berries = 8/24 = 0.33

Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries

7 0
3 years ago
Other questions:
  • A domestic manufacturer of watches purchases quartz crystals from a Swiss firm. The crystals are shipped in lots of . The accept
    13·1 answer
  • Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all future dividends will be incr
    8·1 answer
  • What is it called when an identity thief calls or emails you pretending to be someone else in order to get your personal informa
    8·2 answers
  • What bill will have to be paid one of these days to kill a mockingbird?
    14·1 answer
  • Red Co. had $3 million in accounts receivable recorded on its books. Red wanted to convert the $3 million in receivables to cash
    10·1 answer
  • Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items car
    10·1 answer
  • You’ve received your raise pool for the year and it’s not as big as you had hoped. You fear that you won’t be able to provide th
    9·1 answer
  • Preparation of cash budget Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2013 to make sure they can
    10·1 answer
  • Ed died while employed by Violet Company. His wife collected $40,000 on a group term life insurance policy that Violet provided
    12·1 answer
  • A new business should be based on an entrepreneur's individual interests because the entrepreneur must
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!