Non-cash assets are expected to produce cash over time but the amount of cash they eventually produce could be higher or lower than the values at which the assets are carried on the books. Some factors that affects the value of non-cash assets are the general economic forces such as inflation or deflation, amortization or impairement itself of the assets. It maybe realized at favorable side (gain) or unfavorable (loss) side.

3 0

3 years ago

Blossom Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and Dece

Nat2105 [25]

Explanation:

The journal entries are as follows

On December 31, 2020

Cost of goods sold $24,650

To Allowance for reduction in inventory to NRV $24,650

(Being the cost of goods sold is recorded)

It is computed below:

= $379,880 - $355,230

= $24,650

On December 31, 2021

Allowance for reduction in inventory to NRV $3,640

To Cost of goods sold $3,640

(Being the allowance for reduction is recorded)

It is computed below:

= $24,650 - ($445,440 - $424,430)

= $24,650 - $21,010

= $3,640

6 0

3 years ago

Ivanhoe Company issued $492,000 of 10%, 20-year bonds on January 1, 2017, at 104. Interest is payable semiannually on July 1 and

mamaluj [8]

Answer:

Explanation:

For answer , see the attached file.

Download docx

5 0

3 years ago

During the year, Juanita has the following income: Gift from her father to help with her student loans $8,500 Interest income on

stich3 [128]

Answer:

$565

Explanation:

First of all, the person that receives a gift does not pay taxes for it. Also, proceeds from a life insurance policy are not taxable either. Municipal bonds are not taxed by the federal government.

This means that Juanita's taxable income = $400 interests from Treasury bonds + $165 interests from savings account = $565.

6 0

3 years ago