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Leya [2.2K]
2 years ago
7

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

Business
1 answer:
Ivan2 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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it can fall into the food

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Answer:inventory

Explanation:

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Last year, Stumble-on-Inn, Inc. reported an ROE of 19 percent. The firm's debt ratio was 60 percent, sales were $34 million, and
Sonja [21]

Stumble-on-Inn, Inc.'s net income for last year is <u>$3,359,200</u>.

<h3>Data and Calculations:</h3>

ROE (Return on Equity) = 19%

Debt ratio =60%

Sales = $34 million

Capital intensity = 1.30 times

Assets = $44.2 million ($34 million x 1.30)

The Total Debt = $26,520,000 ($44,200,000 x 60%)

The Equity = $17,680,000 ($44,200,000 - $26,520,000)

The Net income = $3,359,200 ($17,680,000 x 19%)

Thus, Stumble-on-Inn, Inc.'s net income for last year is <u>$3,359,200</u>.

Learn more about Net Income at brainly.com/question/21271689

5 0
2 years ago
Fairchild Garden Supply expects $700 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses thi
vazorg [7]

Answer:

D) 3.48

Explanation:

Current Year Sales = $700

Growth rate = 15%

Projected Sales=$700*15% +$700

Which is $805

Required inventory = $30.2 + 0.25*projected sales

Req.Inv = $30.2 + 0.25($805)

Req.Inv = $231.45

Inventory turn over = projected sales/Req.inv

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Inventory turn over = 3.48 times

8 0
3 years ago
Production estimates for August for Jay Company are as follows:
dimaraw [331]

Answer:

c.$1,080,000 for A; $648,000 for B

Explanation:

For computing the total direct material purchase first we have to find out the production units which are shown below:

As we know that

Production units = Ending inventory units + sales units - beginning inventory units

= 9,000 units + 75,000 units - 12,000 units

= 72,000 units

Now the total direct material purchase for Material A and Material B is

For Material A

= 72,000 units × 3 lbs × $5 per lb

= $1,080,000

For Material B

= 72,000 units × 0.5 lbs × $18 per lb

= $648,000

Therefore, the third option is correct

4 0
3 years ago
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