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3 years ago

At the end of the closing process, Income Summary will hold a balance.

Business

1 answer:

Ray Of Light [21]3 years ago

3 0

Answer:

False. Have a Good day I hope this helps

Explanation:

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Brooks Co. purchases various investments in trading securities at a cost of $66,000 on December 27, 2013. (This is its first and

sineoko [7]

Answer:

a) Debit 6,000 to trade securities and Credit $6,000 to Unrealized Gain account

b) Debit $35,000 to Cash account

Credit $33,000 to trade securities account

Credit $2,000 to gain on sales on securities account.

Explanation:

The first part of the question is to determine the year-ended adjusting entry

As follows:

December 31, 2013

Trading Securities = Fair value of the Securities - Trading Securities at Cost

= $72,000 - $66,000

= $6,000

The Journal entry Description Debit Credit

Dec 31, 2013 Trading Securities 6,000

Gain unrealized on securities a/c 6,000

Being the record of unrealized holding gain on trading securities

Part 2) January 3, 2014 Sales of a Portion of Trading Securities

Date Description Debit Credit

Jan 3rd, 2014 Cash 35,000

Trading Securities a/c 33,000

Gain on sales of Securities 2,000

Being the record of sales of a portion of trade securities.

6 0

3 years ago

The process of creating new or improved goods and services or developing better ways to produce or provide them is called ______

julsineya [31]

This is called intervention

7 0

3 years ago

Credit cards and charge cards differ in two important ways. One is the method of payment. What is the other difference? A. You e

inessss [21]

B You earn interest when you use a charge card but not a credit card.

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3 years ago

Read 2 more answers

Catharine, Inc. is considering issuing additional long-term debt to finance an expansion. The company currently has $20 million

sladkih [1.3K]

Answer:

$10 million

Explanation:

Calculation for How much additional 10 percent debt can Catharine, Inc issue

First step is to find the EBT

EBT = $3.0 / (1 - 0.40)

EBT= $5.0

Second step is to find the EBIT

EBIT = $5.0 + $1.0

EBIT= $6.0

Third step is to find the Interest permitted using this formula

Interest permitted = EBIT / Times interest earned

Let plug in the formula

Interest permitted = $6.0 / 3.0

Interest permitted = $2.0

Fourth step is to find the Additional interest amount

Additional interest = $2.0 - $1.0

Additional interest = $1.0

Last step is to compute the Additional debt amount

Additional debt = $1.0 / 0.1

Additional debt= $10 million

Therefore the Additional debt will be $10 million

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3 years ago

Stock X has a beta of 0.7 and Stock Y has a beta of 1.3. The standard deviation of each stock's returns is 20%. The stocks' retu

kipiarov [429]

Answer:

e. Portfolio P has the same required return as the market (rM).

Explanation:

The answer is e. Portfolio P has the same required return as the market (rM).

let's find the beta of the portfolio = 0.5 * 0.7 + 0.5 * 1.3 = 1.0

From the information above , the required return on the portfolio = risk free rate + beta * (Expected market return - risk free rate) = risk free rate + 1 * (Expected market return - risk free rate) = Expected market return.

6 0

3 years ago