A company buys ten shares of securities at P2.000 each on December 31, 2031. The securities are classified to be su
Q: During your audit of cash receipts of shift number 1 of a Burger Stand, the following details of inv...
A: Cash remittance: Cash remittance indicates a payment of money through cash instead of using any card...
Q: Sellall Department Stores reported the following amounts as of its December 31 year-end: Administrat...
A: The gross profit is calculated as difference between sales and cost of goods sold. The gross profit ...
Q: ent of Alfred Cesar Quinsay, CPA, are as follows: Accounts Payable Accounts Receivable Accumulated D...
A: The income statement explains the financial performance of the company for a particular period of ti...
Q: Arlene Company accounted for noncurrent assets using the cost model. On October 30, 2017, the entity...
A: GIVEN Arlene Company accounted for noncurrent assets using the cost model. On October 30, 2017, th...
Q: A company had the following transactions during the finst month of the year. Frepare an income slale...
A: Journal Entries - Journal Entries are recorded to enter transactions entered into by the company. Al...
Q: If a manager at the company desired to determine the percentage
A: The percentage change in operating income depends on the operating leverage. Operating leverage is c...
Q: What is one objective of an appraisal program? a. having tho
A: What is the one Objective of an appraisal program ? a. having the employee feel more valued b. dete...
Q: 2.00% 1.00% 1.00% Income Before Income Tax Tax Expense (50%) Net Income Additional Information for t...
A: Free Cash Flow - The formula for Calculation - Cash Flow from Operating Activities - Capital Expend...
Q: The total factory overhead for Bardot Marine Company is budgeted for the year at $1,518,000. Bardot ...
A: Factory Overhead Rate Per Hour = Factory Overhead / Direct Labor Hours Factory Overhead Rate Per Uni...
Q: For control purposes, any cash overage should be
A: Petty cash is the cash fund which has been established by the company in order to make the day to da...
Q: Questions: 1. The loss from discounting of notes receivables is? 2. The adjusted balance of Accoun...
A: This is a multipart question in which we have to solve different parts.
Q: Allen's Rest Well Resort is a resort cottage located incorporated in Jamaica. The company is a regis...
A: Tax Written Down Value (TWDV): The tax written down value (TWDV) of a resource is the use remaining ...
Q: The following are the balance sheets of Entity A and Entity B as of June 30, 2021: Entity A Current ...
A: Fair value of net assets of entity B = Current assets + Non current assets - Current liabilities - N...
Q: Provide the Bottomline/Conclusion and Recommendation based on the Financial Ratios.
A: Financial ratios are used to analyze the financial results of the organization so as to find out whe...
Q: ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC as...
A: Income tax is acknowledged as the expense paid by a taxpayer to the government for the income earned...
Q: Below are the transactions that Jenny Trading Sdn Bhd (JTSB) incurred during the month of July 2020....
A: The answer is given below. Explanation:
Q: Identify which of the following accounts would be listed on the company’s Post-Closing TrialBalance....
A: Closing entries are those journal entries which are passed at the end of accounting period in order ...
Q: Moore Industries manufactures exercise equipment. Recently the vice president of operations of the c...
A: The question is based on the concept of Financial Management. The Selling price or the fair of the b...
Q: On July 1, Blue Spruce Corporation purchases 460 shares of its $5 par value common stock for the tre...
A: Treasury shares means the share which has been buy back by the company . It will be shown as deducti...
Q: I need help with just 4a please thank you.
A: The Company generally differentiate the different type of costs in order to control and track those ...
Q: The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Cr...
A: Solution Working note - Present value of minimum lease payment = (Annual lease Payment *PVAD for 9% ...
Q: Problem 8-24 X Corporation issued its share capital in exchange for a portion of land with lar value...
A: Lump sum sale of shares means when company issue two or more securities against cash or asset. For t...
Q: 7...new.e1..... Sage Industries and Pronghorn Inc. enter into an agreement that requires Pronghor...
A:
Q: A reputable doctor quits his job, which pays $77,000 a year, to open a non-governmental organization...
A: Lets understand the basics. Opportunity cost is a potential loss due to acceptance of any other alte...
Q: in a study of govemment financial aid for college students, it becomes necessary to estimate the per...
A: calculation of sample size needed are as follows
Q: A Co. and B Co. are joint venturers of C.Co, a producer of high tech machinery. A and B, each have 5...
A: Joint ventures is a form of agreement or arrangement between two or more than two persons, in which ...
Q: Q1 From the following data calculate price index number for current year as 2021 a) Laspeyre's metho...
A: An index number seems to be a way of analyzing fluctuations in a variable or set of variables in ter...
Q: Calculate the amount of the annual rental payment required. (Round present value factor calculations...
A: Lease refers to a contract between two parties under which one party who is the real owner of an ass...
Q: Additional data: The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inven...
A: In case of questions with more than 3 sub-parts first three sub-parts are solved. Post the rest sub-...
Q: cost and hol
A: Economic order quantity refers to the ideal quantity that a company is required to order for reducin...
Q: January 25 Received $1150 cash for laundry services provided in January 2022. JOUonal eny xy
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Which of these events will not be recognized?A. A service is performed, but the payment is not colle...
A: Financial statements are a set of high-level reports that summaries an organization's financial perf...
Q: On January 3, 2010, Boyer Corp. owned a machine that had cost $200,000. The accumulated depreciation...
A: Contingency gain refers to when there is no actual gain and only there is a probability that there w...
Q: 585477&cmid=D123356848&page%3D20 Abercrombie Company uses four special journals: Purchases, Sales, C...
A: The question is related to Journal entries. The company uses four special journal to recors the tran...
Q: 4.. new.. Bonita Leasing Company agrees to lease equipment to Windsor Corporation on January 1, 202...
A:
Q: Cramer Company sold 5-year, 8% bonds on October 1, 2011. The face amount of the bonds was $100,000, ...
A: Interest expense = Interest accrued - Amortization of premium where, Accrued interest = Face value o...
Q: b) State the journal entries necessary to record the following transactions in the general journal. ...
A: In this question we State the journal entries necessary to record the following transactions in the...
Q: Sutton Company purchased 10% of the outstanding stock of Roberts Company on January 1, 2012. Robert...
A: In this question, we have to report event by using cost method
Q: A business purchased a new car at the start of October for $16,800 cash. The car has a useful life o...
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as d...
Q: xercise Igo) alculate earned revenues g Blue University has a fiscal year that ends on June 30. The ...
A: The money created by a company's business is known as revenue. Revenue can be estimated in a variety...
Q: Required: Determine the following measures for 20V2, rounding to one decimal place, except for dolla...
A: Ratios play an important role in the analysis of the financial performance of an organization during...
Q: ASSETS 2010 2009 LIABILITIES AND EQUITY 2010 2009 S 10 S 15 Accounts payable Notes payable $ 60 Cash...
A: Net operating profit after-tax is the profit generated from the core business activities after deduc...
Q: Explain the possible IFRS treatment of bank loans
A: Solution International financial reporting Standards (IFRS) are a set of accounting rules for the fi...
Q: 16. H.E.B. Grocery Company, LP has two classes of stock authorized: 100 par value preferred and $1 p...
A: Share capital refers to the capital is raised by the issue of shares. It is an amount that is invest...
Q: QUESTION TWO IFA Corporations had Net Income of $780,000 and the following information for January 2...
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...
Q: Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000 1,1...
A: Preparation of flexible budget are as follows
Q: On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0% install...
A: Formula: Principal amount in each payment = Total principal amount / 4 years
Q: consider when c ving except for: n recorded by the keffect of the ad saction involve th
A: Consolidated adjustment entries refer to the adjusting entries which are passed when a subsidiary co...
Q: Abercrombie Company uses four special journals: Purchases, Sales, Cash Receipts, and Cash Disburseme...
A: Notes:- Dear Student I have used my own formate which may be different from yours so, please updat...
Q: One operating cycle of a business, which could be a month, quarter, or year, is commonly referredto ...
A: The operating cycle is the average amount of time it takes for a company to invest money to produce ...
Step by step
Solved in 2 steps
- S&L Financial buys and sells securities which it classifies as available-for-sale. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $877,000 and sold the bonds on January 3, 2025, for $882,500. At December 31, the bonds had a fair value of $874,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2024 and (b) the saleOn January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity securities qualify as a financial asset held for trading. The entity also paid P50,000 as commission to the broker. At year-end, the trading securities have a fair value of P6,000,000. The increase in fair value should be recorded with: a.A credit to Financial asset - FVPL, P1,000,000 b.A debit to Unrealized gain - OCI, P1,000,000 c.A debit to Financial asset - FVPL, P1,000,000 d.A debit to Unrealized gain - P/L, P1,000,000S&L Financial buys and sells securities which it classifies as available-for-sale. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $745,000 and sold the bonds on January 3, 2025, for $748,500. At December 31, the bonds had a fair value of $742,500, and S&L has the intent and ability to hold the investment until fair value recovers. What pretax amounts did S&L include in its 2024 and 2025 net income as a result of this
- A company purchases debt securities for $100,000 at the beginning of 2022. It classifies as trading securities and $60,000 as AFS securities. It sells the securities in 2023. Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2022 and 2023. In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors. a. Fair value, end of 2022 Selling price, 2023 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI End of 2022 $ 2023 b. Trading securities AFS securities $38,000 $65,000 43,000 64,000 Income Fair value, end of 2022 Selling price, 2023 End of 2022 $ 2023 (2,000)✓ $ 9,000 ✓ Trading securities AFS securities $45,000 $56,000 42,000 68,000 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI (4,000) ✔ 0 x 5,000 ✓ 0 x Income 5,000 $ 5,000 ✓At the beginning of the current year, Alexis Company purchase marketable equity securities to be held as “trading” for P5,000,000. The entity also paid transaction cost amounting to P200,000.The securities had a market value of P5,500,000 at year-ended and the transaction cost that would be incurred on the sale is estimated at P100,000. No securities were sold during the current year. Assuming the company has elected irrevocably to measure the investment at FV thru OCI. What amount of unrealized gain or loss on these securities should be reported in the income statement for the current year?In 2021, Milka Company purchased an investment in equity securities. The related data of December 31, 2021: Security No. of shares Initial Cost Fair value Transaction cost A 6,000 P300,000 P295,000 P15,000 B 8,000 280,000 260,000 20,000 C 10,000 400,000 458,200 20,000 The entity sold 2,400 shares of Security B on January 5, 2022, for P82,500. If measured at FVOCI, how much is the net effect on retained earnings in 2022?
- During the year 2021 Azimuth Corporation engaged in the following transaction with marketable securities:May 14: Azimuth purchases as a short-term investment 1,000 shares of ADIDAS. Azimuth paid €197.15 per share, plus a brokerage commission of €240. August 27: Azimuth sells 100 shares of its ADIDAS stock for €197.81 per share, less a €102 brokerage commission.October 10: Azimuth receives a €3.40 per share dividend on its ADIDAS shares.December 31: ADIDAS stock has a current market value of €198.12 per share. 3.1 Record the above four transactions in general journal.3.2. Define marketable securities. What characteristics of these securities justify classifying them as financial assets?Early in its 2023 fiscal year (December 31 year end). Whispering Winds Company purchased 10,700 Kenyon Corporation common shares for $26.18 per share, plus $1,800 in brokerage commissions. These securities were accounted for at FV-OCI (with no recycling). and transaction costs were capitalized. In September, Kenyon declared and paid a dividend of $1.02 per share, and on December 31. 2023, the fair value of these shares was $290,505. On April 13, 2024, Whispering Winds sold all the Kenyon shares at a price of $28.10 each, incurring $1.925 in brokerage commissions on the sale. (a) Prepare the entry to record the purchase of the Kenyon shares. (Credit account titles are automatically indented when the 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. List debit entry before credit entry) Account Titles and Explanation Debit CreditOn 1 January 2021, SR Bhd (SRB) purchases two quoted securities from the open market. The details of the purchases are as follows:Price (RM) Commission (RM) 1,000,000 ordinary shares of MA Bhd 2,500,000 10,000 1,000,000 bonds of ABB Bhd 1,000,000 5,000BSB intends to trade these investments and will sell them when their market price increases by about 10% or more. On 31 March 2021, the quoted market price of MA Bhd’s ordinary shares is RM2.10 and the market price of the bonds of ABB Bhd closes at 95 sen per unit. On 30 April 2021, the quoted market price of MA Bhd’s ordinary shares is RM2.80 and the market price of the bonds of ABB Bhd remain the same (closes at 95 sen per unit). SRB decided to sell all units of MA Bhd’s ordinary shares.Required:(i) explain how BSB shall account for the two quoted investments.(ii) provide the journal entries to record the above transactions.
- On January 1, 2021, the Oliswel Corporation purchased equity securities to be held for trading purposes for P2,000,000. The company also paid commission, taxes and other transaction costs amounting to P50,000. The securities had fair values at December 31, 2021 and 2022, respectively: P1,750,000 and P2,100,000. No securities were sold during 2022. What amount of unrealized gain or loss should be reported in the 2022 profit or loss section of the statement of comprehensive income? (A) P100,000 gain B P350,000 gain C) P200,000 loss (D P250,000 lossOn January 1, 2020, Alexis Company purchased marketable equity securities to be held as "trading" for P5,000,000. The entity also paid commission, taxes and other transaction costs amounting to P200,000. The securities had a market value of P5,500,000 on December 31, 2020 and the transaction costs that would be incurred on sale are estimated at P100,000. No securities were sold during 2020. What amount of unrealized gain or loss on these securities should reported in the 2020 income statement? a.P500,000 unrealized loss b.P400,000 unrealized gain C.P500,000 unrealized gain d.P400,000 unrealized lossAt December 31, 2022, ABC Corp. had the following equity securities that were purchased during 2022, its first year of operation: Trading Securities: Security A B Totals FAFV Thru OCI: Security Y Z Totals Cost P 90,000 15,000 P105.000 P 70,000 85,000 P155.000 Fair Value P 60,000 20,000 P 80.000 P 80,000 55,000 P135.000 Unrealized Gain (Loss) P(30,000) 5,000 P(25.000) P 10,000 (30,000) P(20.000) All market declines are considered temporary. How much of the fair value adjustments at December 31, 2022 should be charged against income? equity? Present your solution.