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3 years ago

On December 31, 2017, Turnball Associates owned the following securities, held as a long-term investment.

Business

1 answer:

Ivan3 years ago

7 0

Common Stock Shares Cost

Gehring Co. 1,800 $50,400

Wooderson Co. 4,800 33,600

Kitselton Co. 1,400 25,200

On December 31, 2017, the total fair value of the securities was equal to its cost. In 2018, the following transactions occurred.

Aug. 1 Received $0.50 per share cash dividend on Gehring Co. common stock.

Sept. 1 Sold 1,440 shares of Wooderson Co. common stock for cash at $6 per share.

Oct. 1 Sold 720 shares of Gehring Co. common stock for cash at $31 per share.

Nov. 1 Received $1 per share cash dividend on Kitselton Co. common stock.

Dec. 15 Received $0.50 per share cash dividend on Gehring Co. common stock.

Dec. 31 Received $1 per share annual cash dividend on Wooderson Co. common stock.

At December 31, the fair values per share of the common stocks were: Gehring Co. $30, Wooderson Co. $6, and Kitselton Co. $16.

a-Journalize the 2018 transactions and post to the account Stock Investments. (Use the T-account form.)

b-Prepare the adjusting entry at December 31, 2018, to show the securities at fair value. The stock should be classified as available-for-sale securities. c-Show the balance sheet presentation of the investments at December 31, 2018. At this date, Turnball Associates has common stock $1,400,000 and retained earnings $1,000,000.

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Q 4.24: At the end of March, Paul’s Painting hired five temporary employees to work on a project that began on April 5 and ended

Nookie1986 [14]

Answer:

At the end of March, Paul’s Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. Paul’s received 100% of the total payment for the project on May 3. In this situation, both cash basis accounting and GAAP require that Paul’s recognize the employees’ total salary expense in April.

Explanation:

A collection of accounting rules and standards usually followed, for financial reporting is known as GAAP (generally accepted accounting principles) .

For businesses, GAAP needs accrual accounting.

Accrual accounting operates on the basis of matching both revenue and expenses. Revenues and the related expenses occur concurrently, though the cash transaction concerning thereto might happen in some other period.

In the situation given in the question, the revenue from the project is earned in April, subsequently, the salary expense related to that work should also be recognized in the same period due to an accrual basis.

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3 years ago

Read 2 more answers

Use this formula to help solve the problem.

Sindrei [870]

$2,000 i think it is

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3 years ago

Consumption consists of spending by households on goods and services, with the exception of a. purchases of intangible services.

Leona [35]

Answer:

Explanation:

Different schools of economists define consumption differently.

-The process in which goods or services are used to satisfy economics leads.

-Consumption is known as direct or final consumption, when the goods satisfy human wants directly and immediately. The goods have reach their final destination.

-Consumption is also the value of all goods and services bought by households. Includes:

*durable goods. last a long time, e.g. cars, home appliances.

*nondurable goods. last a shot time, e.g. food, clothing.

*services. work done for consumers, e.g. dry cleaning, air travel, legal.

*also, rent is a payment for housing services.

But for GDP, when you bought a house, is considered investment.

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3 years ago

Johnson Company has current year accounts payable of $25,000 and cost of goods sold of $100,000. Compute Johnson Company’s days’

natita [175]

Answer:

the days payable outstanding is 91.25 days

Explanation:

The computation of the days payable outstanding is shown below:

Days' payable outstanding is

= (Accounts Payable ÷ Cost of goods sold) × total number of days in a year

= ($25,000 ÷ $100,00) × 365 days

= 91.25 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Hence, the days payable outstanding is 91.25 days

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3 years ago

Read the following prompt and type your response in the space provided.

Softa [21]

Answer:

See explanation below.

Explanation:

Physical fitness can be used to describe a state of health and of well-being. It can be defined as the ability of the body to function efficiently and effectively during work and leisure activities, it means to be healthy, to resist disease, and to be able to quickly react to emergency situations.

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- Physically active people are less likely to develop coronary heart disease than people who are inactive.

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3 years ago