Record the year-end entry to adjust the debt investments to fair value.
Q: he answer is 1,130.55
A: Present value after the cash flow becomes constant = [1/(1+r)n] X [constant cash flow/r]wherein, n =…
Q: Lisa Hansen is the manager of American Autos American Autos provides three types of services, Sales,…
A: According to the question given, we need to prepare the overhead distribution summary.Meaning of…
Q: Dividing Partnership Net Income Required: Steve Prince and Chelsy Bernard formed a partnership,…
A: Partnership is an agreement between two or more people who work together for a common…
Q: Sunland Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2024 and received cash…
A: The bonds payable are reported as the long-term liabilities in the balance sheet. The bonds are…
Q: Indiana Company began a construction project in 2024 with a contract price of $161 million to be…
A: The construction contract is a long-term contract that generally takes more than a year to finish…
Q: E9-3 (Algo) Preparing a Flexible Budget Performance Report [LO 9-2] Required: Gleason Guitars…
A: Variances are the differences between the flexible budget costs and the actual costs. These are…
Q: Pam Alnwick used to live in a province where the Harmonized Sales Tax, HST, was 15%. She recently…
A: Given information:Pam Alnwick lived in Rockingham, NS. She now lives in Melbourne, FL.The harmonized…
Q: The following summary transactions occurred during the year for Marigold. Cash received from:…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Paul Moss, owner of Moss Interiors, is negotiating for the purchase of Crane Galleries. The…
A: Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…
Q: The half-life of a radioactive isotope is the time it takes for a quantity of the isotope to be…
A: After each half-life, the amount is reduced by half.Calculation Starting with 125 grams:Starting…
Q: prepare statement of cost and an estimation for 2023.
A: Income statement is a financial statement which shows the net income of the business.It shows the…
Q: Crane Enterprises had the following selected transactions. 1. 2. 3. 4. (a) Indicate the effect each…
A: Accounting equation is a mathematical equation that shows relationship between assets, liabilities…
Q: Nancy's Kreations just completed its best year, generating income of $61,000 from selling decadent…
A: To calculate the total operating income after accepting the special order, the existing income…
Q: A retailer allocates $196,000 of total annual rent expense to its four departments in a two-story…
A: Cost allocation is the process of allocation of cost to different cost objects. This is used to…
Q: The account balances for KinderMorgan are listed below. All balances are as of December 31, 2022,…
A: Ratio analysis is a method used to analyze financial statements by calculating and comparing various…
Q: (b) Prepare the journal entry to record the payment of interest and the discount amortization on…
A: Bonds can be issued at either par value or premium or at discount. If bond is issued for more than…
Q: Department G had 2,160 units 25% completed at the beginning of the period, 12,400 units were…
A: FIFO METHOD :— Under this method, equivalent units are calculated by adding equivalent units in…
Q: Futura Company purchases the 40,000 starters that it installs in its standard line of farm tractors…
A: Note : Rent is fixed and allocated cost, actual rent does not change in both the cases whether we…
Q: Problem 7-42 (Algo) Joint Products [LO 7-6] Choi Company manufactures two skin care lotions, Smooth…
A: Based on the above data the solution is to be prepared.
Q: To keep her existing sales volume and take on the new convention center events, Nancy would need to…
A:
Q: Assume a company had net income of $73,000. It provided the following excerpts from its balance…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: On August 1, 2024, Company A, an aeronautic electronics company, borrows $19.7 million cash to…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: a. Rattan commenced a contract to build an asset for a customer in the year ended 30 September 20X4.…
A: The cost of each contract is computed individually and a different account is opened for each…
Q: Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase…
A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…
Q: Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a…
A: The difference between a company's current assets and current liabilities is referred to as working…
Q: Avenger's Inc. began operations on January 1 of the current year with a $25,000 cash balance. 40% of…
A: Answer:- The sales on the account means the sale is done on a credit basis. The amount of the credit…
Q: Understanding EPS Calculations On its Form 10-K for the year ended December 31, 2015, Bank of…
A: Stockholder's Equity includes the amount contributed by shareholders in the form of common stock,…
Q: On December 31, 2012, Alexander Company had $1,235,900 of short-term debt in the form of notes…
A: Liability is an agreement made by a company to pay the certain amount for the goods or services…
Q: At the end of the first pay period of the year, Dan earned $6,600 of salary. Withholdings from Dan's…
A: Wages refer to the amount that an employee receives for the services rendered by them to the…
Q: INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: 5c Taxable Medicare wages & tips 107,558.13 0.029-
A: According to rates set by the Internal Revenue Service, the current Medicare tax rate is 1.45%. This…
Q: Rodriguez Company pays $368,550 for real estate with land, land improvements, and a building. Land…
A: Apportionment cost to assets refers to the process of distributing or allocating expenses or costs…
Q: 1. 2. 3. 4. 5. What is the pension cost in years 2 and 3 What is the over(under) pension funding at…
A: To calculate the pension cost in years 2 and 3, we need to determine the present value of the…
Q: Using the following information for a periodic inventory system, what is the amount of net income
A: In a periodic inventory system, a business updates its inventory records periodically rather than…
Q: Pedroni Oil Company purchased packaging equipment on January 8 for $72,000. The equipment was…
A: Hi studentZince there are multiple questions, we will answer only first question.Depreciation…
Q: Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In…
A: Lean production methid is the ideology that aims at maximizing the productivity and minimising the…
Q: Required information (The following information applies to the questions displayed below.] On…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
Q: (c) Assume that the equipment consists of an input device with a cost of $60,000, residual value of…
A: Straight Line Method (SLM): Under this method, a fixed portion of the asset is depreciated every…
Q: Viktor exchanges stock (adjusted basis $19,000, FMV $26,800) and real estate (adjusted basis…
A: Realized gain:Realized gain refers to the profit made from the sale of an asset once the transaction…
Q: Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: What will be reported on the income statement as a "special item?"
A: Special items in accounting for discontinued operations refer to significant transactions or events…
Q: Olde Corporation provides an executive stock option plan. Under the plan, the company granted…
A: Stock Options Stock options are the stock-based compensation plans provided in the form of an option…
Q: During 2023, Harmony Co. sold $510,000 of merchandise at marked retail prices. At the end of 2023,…
A: The cost to retail ratio is calculated as inventory at cost divided by inventory at retail. The…
Q: Tesla State University is a public university. Assume deferred revenues as of July 1, 2022 are in…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: 11. We bought a machine and will make equal annual payments of $1,000 each year for 6 years. The…
A: The present value formula helps in determining the today’s value of money which is to be received or…
Q: On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions…
A: According to the question given, we need to compute the estimated cost of goods sold and ending…
Q: Williams Company issued 200 of as 8 $1,000, 5-year bonds on January 1, 2023 On that date, the market…
A: Issue price of bonds is the present value of the interest annuity & maturity amount at market…
Q: The old Model B100 machine is not the company's constraint, but management is considering replacing…
A: Relevant CostIn Management accounting the term relevant cost really matters. The relevant cost is…
Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…
A: The business entities or lenders determine financial ratios to compare different companies' outcomes…
Q: Assume the following (1) selling price per unit - $25, (2) variable expense per unit-$13, (3) unit…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Step by step
Solved in 3 steps
- Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.Windsor Company has the following data at December 31, 2020 for its debt securities: Securities Cost Fair Value Available-for-sale $44,200 $50,700 Trading 59,800 54,600 Journalize the December 31 adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Date Account Titles and Explanation Dec. 31 Debit Credit Dec. 31 (To record fair value adjustment for available-for-sale investment) (To record fair value adjustment for trading investment)Tamarisk Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amoortization cost $52,100 Fair Value 44,200 Expected credit losses 12,850 What is the amount of the credit loss that Tamarisk should report on this available-for-sale security at December 31, 2020? Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2020. Assume that the fair value of the available-for-sale security is $57,200 at December 31, 2020, instead of $44,200. What is the amount of the credit loss that Tamarisk should report at December 31, 2020? Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 2020.
- Sheridan Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2025. Amortized cost Fair value Expected credit loss (a) $50,800 41,600 12.450 Your answer is correct. What is the amount of the credit loss that Sheridan should report on this available-for-sale security at December 31, 2025? (Do not leave any answer field blank. Enter O for amounts.) Amount of the credit loss. $ 9200Marigold Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amortized cost $51,100 Fair value 42,200 Expected credit losses 12,600 A. What is the amount of credit loss that marigold should report on this available-for-sale security at december 31, 2020? Amount of the credit loss $ 8,900 B. Prepare the journal entry to record the credit loss, if any ( and other adjustments needed), at December 31, 2020? date account titles and explanations debit credit 12/31/20 8,900 8,900 Please note that the answer is NOT Debit Loss on available for sale debt securities and Credit avilable for sale debt securities. These are the account titles I can choose from... Accumulated Other…On its December 31, 2024 balance sheet, Sandhill Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2025 in the composition of Sandhill's portfolio of debt investments held as available- for-sale debt securities. The following information pertains to that portfolio: Security X Y Z Cost $154000 116000 O $24000 O $0 O $14000 O $28000 199000 $469000 Fair value at 12/31/25 $200000 98000 157000 $455000 What amount of unrealized loss on these debt securities should be included in Sandhill's stockholders' equity section of the balance sheet at December 31, 2025?
- At December 31, 2022, the trading debt securities for Sheridan, Inc. are as follows. Security A (a) B C Cost $17,800 12,000 Dec. 31 22,900 $52,700 Fair Value $16,300 13,600 19,400 $49,300 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (List all debit entries before credit er Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No- for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit CreditSkysong Company has the following data at December 31, 2020 for its debt securities: Securities Cost Fair Value Available-for-sale $38,760 $44,460 Trading 52,440 47,880 Journalize the December 31 adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Debit Credit Date Account Titles and Explanation Dec. 31On its December 31, 2024 balance sheet, Calhoun Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2025 in the composition of Calhoun's portfolio of debt investments held as available-for-sale debt securities. The following information pertains to that portfolio: Security XY N B) $0. OC) $40,000. Cost $130,000 OD) $30,000. 100,000 175,000 $405,000 The amount of unrealized loss reported as a component of comprehensive income for the year ending December 31, 2025 is OA) $20,000. Fair value at 12/31/25 $160,000 90,000 125,000 $375,000
- Morley Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amortized cost $50,000 Fair value 40,000 Expected credit loss 12,000 a. What is the amount of the credit loss that Morley should report on this available-for-sale security at December 31, 2020? b. Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2020. c. Assume that the fair value of the available-for-sale security is $53,000 at December 31, 2020, instead of $40,000. What is the amount of the credit loss that Morley should report at December 31, 2020? d. Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 2020.Cost and fair value data for the trading debt securities of Wildhorse Company at December 31, 2022, are $60,500 and $57,450 respectively.Prepare the adjusting entry to record the securities at fair value. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title for the adjusting entry on December 31 enter a debit amount enter a credit amount enter an account title for the adjusting entry on December 31 enter a debit amount enter a credit amount9. On August 20, 2025, Micco Co. decides to invest excess cash of $3,200 by purchasing Finch, Inc. bonds. At year-end, December 31, 2025, the market price of the bonds was $2,600. The investment is categorized as available-for-sale debt. Journalize the adjusting entry needed at December 31, 2025. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31, 2025