Answer:
the answer is the first sentence and the last
Explanation:
Answer:
Dr Available for sale securities 11,500
Cr Unrealized gains - AFS securities 11,500
Explanation:
The securities cost is $420,000 while the fair market value is $431,500, so the difference is an unrealized gain of = $431,500 - $420,000 = $11,500.
Unrealized gains are included in Other comprehensive income account, which belongs under stockholder equity. When unrealized gains increase, then they should be credited.
Since the securities are held as investment assets, they should also increase by debiting the account.
Answer:
The amount that the company should include in the current liability section of the balance sheet is $16,000
Explanation:
The short-term debt that the company is refinancing with long-term debt is non-current and deferred tax liability arising from depreciation is also non-current and should be disclosed as such in the Balance sheet after the sub-heading long-term borrowings.
Therefore, The amount that the company should include in the current liability section of the balance sheet is $16,000
Answer:
income - expenses
Explanation:
net income is an entity's income minus all the expenses, taxes etc and net worth is the total wealth own by individual minus expenses.
Answer:
When bonds are converted into common stock____.
a. the market price of the stock and the bonds is ignored when recording the conversion.
Explanation:
This is because the conversion price, which is the price at which the convertible bond is converted into the common stock of the entity, is usually set initially when the conversion ratio is first decided on. Therefore, the market prices of the stock and the bonds are not taken into account when the conversion recording is being done.
