Security A B C Cost $17,500 12,500 23,000 $53,000 Fair Value $16,000 14,000 21,000 $51,000
Q: Aracel Engineering completed the following transactions in the month of June. a. J. Aracel, the…
A: Trial Balance is a summary of ledgers posted according to the ending balance of the ledgers. The…
Q: Using the following information, determine the cost of merchandise sold. Purchases $32,493 Selling…
A: Cost of merchandise sold means actual cost of goods or merchandise that is being sold to customers.…
Q: Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following…
A: The percentage of completion method is useful when a construction spans over multiple years and the…
Q: Magpie Corporation uses the total cost method of product pricing. Below is cost information for and…
A: The markup is the amount of difference between sales and cost of product. The markup amount is based…
Q: Pearson Inc. reports net income earnings of $1,170,000 while paying $120,000 in cash dividends this…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: ost of Units Completed and in Process the charges to Work in Process-Assembly Department for a…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: 51 S. Wall receives a yearly salary of $78737. She is paid bi-weekly and her regular workweek is…
A: Gross Pay: It refers to the amount that is being paid by the business to it's workers as a…
Q: On January 1, 2018, Splash City issues $470,000 of 7% bonds, due in 20 years, with interest payable…
A: Amortization schedules show down how much of each payment goes toward principle reduction and how…
Q: Exercise 2-5 (Algo) Computing Total Job Costs and Unit Product Costs Using Multiple Predetermined…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. Total…
Q: A one-person LLC can be a shareholder of an S corporation. a. True b. False
A: S corporations are corporations that pass income, losses, deductions and credits through their…
Q: On September 1, the Bramble Store paid $21000 to the Ayayai Co. for 5-month's of rent beginning…
A: Adjusting entries are those which are prepared by the entity in order to adjust the prepayments and…
Q: Beginning in 2018 the accounting for investments in stock changed. The former methods used were…
A: "Since you have asked multiple questions, the first question was answered for you. If you want the…
Q: Sofía Gomez runs a mobile pet grooming service. She charges $25 direct labor per grooming hour. She…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: Meenach Corporation uses a job-order costing system with a single plantwide pres hours. The company…
A: The application of overhead entails the allocation of indirect production expenses to a company's…
Q: On January 1, 2021, Matsumura Fishworks Corporation is authorized to issue 2,000 shares of common…
A: Treasury shares are those shares which are being repurchased or reacquired by the company from its…
Q: Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor…
A: VARIABLE OH EFFICIENCY VARIANCE Variable OH Efficiency Variance is the variance due to the…
Q: Silven Industries, which manufactures and sells a highly successful line of summer lotions and…
A: It is the process of making decisions that involve the management of costs in order to achieve…
Q: Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,400 of…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year,…
A: "Since you have posted a question with multiple sub-parts, we will solve only first three sub-parts…
Q: The general ledger of Pop's Fireworks includes the following account balances in 2024: Accounts Cash…
A: Bad Debt Expenses is the ledger that represents those accounts that seem to be uncollectible.…
Q: Fletcher Corporation prepared the following income statement for the fourth quarter in 2018. Sales…
A: The income statement is very important because it presents the profitability of the entity. The…
Q: Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce…
A: Answer:- Income statement is one of the financial statements includes total expenditure and revenue…
Q: On January 1, 2021, MNO Corp. paid $200,000 for its investment in 10,000 shares of XYZ Inc. of the…
A: Investment in Shares:Sometimes companies make investments in other companies by buying their shares.…
Q: On its 12/31/23 Balance Sheet, John's Clothing Inc. reports 'Accounts Receivable, net' of…
A: The net account receivables are calculated as gross account receivables less allowance for…
Q: 1 2 Budgeted costs incurred before any 3 interdepartment cost allocations Support work supplied by…
A: In direct cost allocation, cost are directly allocated from the service department to production…
Q: Robinson Products Company has two service departments (S1 and S2) and two production departments (P1…
A: According to each department's portion of the allocation basis, the direct method divides the…
Q: Nonrecourse debt is generally allocated according to the profit-sharing ratios of the partnership.…
A: Partnership is a form of business organization wherein two or more persons come together to do…
Q: [The following information applies to the questions displayed below.] Penny Arcades, Inc., is trying…
A: Income statement is the financial statement prepared by the entity to determine its profitability.…
Q: 32.Peter, James, and John are partners in a company that is being liquidated. They share profits and…
A: It is an agreement between two or more parties to conduct the business and share the profits and…
Q: A popular product manufactured by Party-On! is a festively decorated punch bowl. The company's…
A: Direct Labor Rate Variance:Direct Labor Rate Variance is equal to the difference between the actual…
Q: Assuming Cox sold 13,000 units during the last six months of the year at $16 each, beginning…
A: Lets understand the basics.There are various method to calculate cost of goods sold and ending…
Q: View Policies Current Attempt in Progress The adjusted trial balance of Bramble Corp. at December…
A: The retained earnings of the business are Increased with net income. The retained earnings decreased…
Q: Blossom Comapny began operations in 2024 and determined its ending at cost and at lower-of-LIFO…
A: Introduction:The cost of goods sold is the cost of producing the commodities sold by a firm. In…
Q: Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an…
A: The flexible budget represents the budgeted costs for different level of production. The flexible…
Q: Required: 1. Determine the activity rate for each activity. Activity Rate /mh /setup /insp. /cust.…
A: Activity-Based Costing: Activity-based costing refers to the allocation of the factory overheads…
Q: Crest Products expects the following sales of its single product: September October November…
A: The production budget is prepared to estimate the number of units to be produced during the period.…
Q: Recording Long- Term Construction: Recognize Revenue at a Point in Time and Over Time Watson…
A: Recording long-term construction projects in accounting involves several steps to properly account…
Q: Required information [The following information applies to the questions displayed below.] Joe and…
A: The definition of adjusted gross income (AGI) is gross income less adjustments to income. Earnings…
Q: Current Attempt in Progress Blossom Company boys merchandise on account from Kingbird Company: The…
A: The journal entries are prepared to record the transactions on regular basis. The cost of good sold…
Q: Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they…
A: The tax principles serve as guiding principles for policymakers, tax administrators, and taxpayers…
Q: Dollar-Value LIFO On January 1, 2015, Sato Company adopted the dollar-value LIFO method of inventory…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. LIFO stands for…
Q: Muñoz Corporation estimated its overhead costs would be $22,800 per mon insurance premium on the…
A: The application of overhead entails the allocation of indirect production expenses to a company's…
Q: Ending inventory Unit cost of the last item sold
A: First in, first out, or FIFO, is an inventory valuation system that bases sales on the first…
Q: The following information is available for the Danske Company. Denominator hours for May Actual…
A: Variance is the difference between the estimated costs and the actual costs. If the estimated costs…
Q: Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement.…
A: Lets understand the basics.When product is produced, it gets transfer through various stages i.e.…
Q: Rochester Construction begins operations in March and has the following transactions. March 1 Issue…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: The inventory cost computed under absorption costing is ____ the inventory cost computed using…
A: Inventory costs are important for firms because they impact profitability, cash flow, and overall…
Q: Pina Ltd. is constructing a building. Construction began on February 1 and was completed on December…
A: Borrowing cost capitalization is the borrowing cost that is added to the cost of qualifying assets…
Q: On April 30, the end of the first month of operations, Joplin Company prepared the following income…
A: Income statement is one of the financial statements that shows profitability, total revenue and…
Q: A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales…
A: Contribution margin is the amount of money earned by the entity after deducting the variable costs…
Step by step
Solved in 3 steps with 1 images
- presentation. EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows. Fair Value Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the balance sheet and income statement presentation at December 31, 2022, after adjustment to fair value. Prepare adjusting entry to record fair value, and indicate statement presentation.Prepare adjusting entry using fair value. BEH.4 (LO 3), AP Cost and fair value data for the trading debt securities of Lecler Company at December 31, 2022, are $62,000 and $59,600, respectively. Prepare the adjusting entry to record the securities at fair value. Indicate statement presentation using fair value.EH.7 (LO 3), AP Writing At December 31, 2022, available-for-sale debt securities for Gwynn, Inc. are as follows. The securities are considered to be a long-term investment. Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 Fair Value $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the statement presentation at December 31, 2022, after adjustment to fair value. c. Pam Jenks, a member of the board of directors, does not understand the reporting of the unrealized gains or losses on trading debt securities and available-for-sale debt securities. Write a letter to Ms. Jenks explaining the reporting and the purposes it serves.
- EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows. Security A B C Total Cost $18,100 12,500 23,000 $53,600 Fair Value $16,000 14,800 18,000 $48,800 Instructions a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the balance sheet and income statement presentation at December 31, 2022, after adjustment to fair value.At December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Security. Cost. Fair Value A $17,500 16,000 B 12,500 14,000 C 23,000 21,000 53,000 51,000 A. Prepare the adjusting entry at December 31, 2022 to report the securities at fair value. B- Show the statement presentation at December 31,2022, after adjustment to fair value. C- E. Kretsinger, a member of the board of directors, does not understand the reporting of the unreal- ized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves.The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…
- The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1, 2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securities that is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be held until their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costing P29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, and treasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bond retirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds…The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…Gecko Investments has the following data regarding their debt investments as of December 31, 2021: Original Cost Amortized Cost Market Value Trading Bonds 95 96 97 Available for Sale Bonds 95 96 97 Held-to-Maturity Bonds 95 96 97 1. What is the total amount of gain or loss to be reported as part of other comprehensive income? Give both the amount and whether it is a gain or loss.
- The following was reported by Church Financial in its December 31, 2024, financial statements: Investments at FVTPL, December 31, 2023 Investments at FVTPL, December 31, 2024. Investment income or (loss) Additional information: 1. 2. 3. $13,400 18,300 (600) The investments at FVTPL are investments in equity securities held for trading purposes. Investment income or loss consists of: holding gain on the FVTPL investments of $3,100, and loss on sale of the FVTPL investments of $3,700. The carrying amount of the FVTPL investment sold was $4,900.Metlock Corporation has the following trading portfolio of debt investments as of December 31, 2020. Security Cost A $16,340 B 18,920 C (a) 29,240 $64,500 (b) Fair Value $12,900 On January 22, 2021, Metlock Corporation sold security C for $27,520. List of Accounts 23,220 Prepare the adjusting entry for Metlock Corporation on December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Save for Later 24,940 $61,060 eTextbook and Media Date Account Titles and Explanation Dec. 31 METLOCK CORPORATION Balance Sheet (Partial) METLOCK CORPORATION Income Statement (Partial) Debit Indicate the balance sheet and income statement presentation of the fair value data for Metlock Corporation at December 31, 2020. $ Credit Attempts: unlimited Submit AnswerCan you help me to calculate adjusted net income, adjusted net income if FV of security B were 285,000, value of held for trading securities as of 12/31/2020 and assuming these securities at measured at FVOCI, calculate the value of these financial assets as of 12/31/2020 Problem: ABC Corporation buys and sells securities expecting to earn profits on short term differences in price. during 2020, ABC Corporation purchased the following held for trading securities. Security A: Cost- 195,000; FV at 12/31/2020- 225,000 Security B: Cost- 300,000; FV at 12/31/2020- 162,000 Security C: Cost- 678,000; FV at 12/31/2020- 660,000 Before any adjustments related to these securities, ABC Corporation had net income of 900,000