2. Edwards Company began business in February of 2021. During the year, Edwards purchased the three trading securities listed below. On its December 31, 2021, balance sheet, Edwards appropriately reported a P4,000 credit balance in its Market Adjustment-Trading securities account. There was no change during 2022 in the composition of Edward's portfolio of trading securities. Pertinent data are as follows: Security A B с Cost P120,000 90,000 160,000 P370,000 Fair Value 12/31/22 P126,000 80,000 157,000 P363,000 What amount of loss on these securities should be included in Edward's income statement for the year ended December 31, 2022? a. P11.000 b. PZ.000 GP3.000 d. POL
Q: There are several different terms to that describes different measures of bond yield. The L rate of…
A: Yield to maturity is the yield the investor earns if the bond is held to maturity. Dividend yield is…
Q: he cash flows associated with a public works project in Buffalo, New York, are shown. Use the…
A: Benefit cost analysis is calculated by dividing the discounted benefits by the discounted costs.…
Q: An automatic device costs Php30,000 and is projected to generate savings of Php11,837.50 annually.…
A: The payback period will be calculated in order to find out the total amount of time which will be…
Q: three call options for wheat. The option has 10 tons of wheat as the underlying asset and P12,100…
A: *Answer: Call option is a derivative contract in which option buyer has right to buy the…
Q: opic: Option Pricing When computing, please do not round off. Only final answers must be rounded…
A: An in-the-money option provides an opportunity to earn profit as it has an intrinsic value and can…
Q: A landowner who sells the mineral rights to a parcel of land while maintaining surface rights…
A: 1.A mineral owner has the right to extract and use minerals discovered beneath the surface of a…
Q: Explain why Ghana is considered an importer of inflation and discuss possible policies to mitigate…
A: Inflation is referred as the rate, where the commodity prices continue to increase. When an amount…
Q: A 3,000,000 peso loan is to be amortized at 4.55% quarterly for 2 years. Solve for the value inside…
A: Amortization schedule: Loan amortization plans are frequently used in connection with installment…
Q: Solve for the daily average balance if the following events happened for the month of April: Date…
A: Average Daily Balance is that balance which was net of withdrawn the Opening Balance and adding the…
Q: It is desired to determine the present economic value of an old machine by considering of how it…
A: Net Present Value is a technique in Capital budgeting which is used for evaluation of project on the…
Q: a) A company is considering investing in Project X. The project requires an initial investment of…
A: NPV is a capital budgeting techniques which help in decision making on the basis of future cash…
Q: Which investment criteria answers the question: "How quickly do we recover our investment, in…
A: Pay back Period is that under which we will received / Recover the investment amount for starting…
Q: small business with an initial outlay of $12,000 yields $. 10,000 during the first year of its…
A: Present worth of business is the difference between the present value of cash flow and initial…
Q: Compute the payback period for each of these two separate investments: a. A new operating system for…
A: Answer - Part 1 - Payback Period = Cost of Investment / Annual Net Cashflow Where,…
Q: In alternative universe, the Australian government has decided to enter into a target-zone…
A: Given: 180000 Current rate = 1.5 AUD/$ Central rate = 1.55 AUD/$ Fluctuate 11% ether side.
Q: Khairul secured a bank loan of RM 180,000 to help the purchase of a house. The mortgage is to be…
A:
Q: a) A share will pay its first dividend of $1.90 in one year. The dividend will be paid every year at…
A: Dividend discounting model will be useful in discounting the future dividend at present in order to…
Q: Junior has bought a four-wheel-drive Suzuki Vitara SUV for his confectionery business. The price of…
A: Price of Veichle is $6,500,000 Down payment of $2,500,000 Interest rate is 12% Time period is 5…
Q: rite a short note on "Profitability Ratios"
A: Profitability ratio shows the ability and efficiency of the firm and show how much are the expenses…
Q: If P100,000 is invested for 6 months at 1.5% per annum, what is the maturity value? O P100,750 O…
A: Present value: It is the current value of a future sum of money or cash flows given over a specified…
Q: 1. The option is currently A. In-the-money B. At-the-money C. Out-the-money 2. Determine the…
A: An in-the-money option shows the option’s profitability equal to the difference between the market…
Q: Topic: Option Pricing When computing, please do not round off. Only final answers must be rounded…
A: An option is a financial instrument that gives the holder a choice to purchase or sell the…
Q: Donna enters into an investment contract that will guarantee her 4% per year if she deposits $3,500…
A: The future value of the investments can be calculated using the FV Function in excel. FV = (RATE,…
Q: uhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to…
A: NPV It is a capital budgeting tool to decide on whether the capital project should be accepted by…
Q: Mr. Kevin Dates is the owner of an expanding business operating in bakery industry located in…
A: NPV is a techniques in Capital Budgeting which help in decision making on the basis of future Cash…
Q: A stock analyst at JP Dealers believes that a stock will earn the following returns next period…
A: To Find: Expected return
Q: Having inaccurate financial statements that can harm society would correspond with the ethical…
A: Financial statement: The income statement, cash flow statement, and balance sheet. Footnotes on…
Q: If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: Explain how Tvm concepts of present and future value impact 401 planning for retirement.
A: The idea of the time value of money (TVM) holds that a quantity of money is worth more now than it…
Q: or 32-33: Marie bought a laboratory equipment with P25 000 down pay payment of P2 500 each. If…
A: As per the given information: Down payment for laboratory equipment - P25 000 Monthly payment - P2…
Q: The desired accumulated amount is $70,000 after 11 years invested in an account with 7.4% interest…
A: We will use the concept of time value of money here. As per this concept the worth of money changes…
Q: A 90-day bank bill with a face value $100,000 was purchased with a yield of 4.00%. If it is sold…
A:
Q: Ontario Credit Union borrowed $275,000 at 9.5% compounded semi-annually from League Central to build…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: eBook Profit or Loss on New Stock Issue Beedles Inc. needed to raise $14 million in an IPO and…
A: As per the given information: Outstanding shares- 3,000,000 shares Proceeds to Beedles Inc -…
Q: With the growing popularity of casual surf print clothing, two recent MBA graduates decided to…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: Gasgard is a country which is going through a historical structural change in its economy. Experts…
A: The expected return of stocks is generally based on different types of market factors and the…
Q: Assuming that the expectations theory is the correct theory of the term structure, calculate the…
A: The expectations theory states that over the same period, the overall interest rate of small-term…
Q: Determine the value of the perpetuity annual amount $20,000 discount rate 8%
A: A perpetuity is an annuity that goes on forever. In other words a perpetuity is an annuity that has…
Q: Using the annuity formula find the total profit earned in the first 10 years where the company…
A: This is a case of a growing annuity. Hence we will use the formula of present value of growing…
Q: The original holder of a $10,000 Province of Manitoba bond issued December 1, 2006, with a 2% coupon…
A: Price of bonds is the present value of coupon payment and present value of par value of bonds.
Q: Why have ETFs grown to become one of the most popular investment products? What are some of the…
A: Exchange traded funds are all such mutual funds which will be traded over the exchanges and they are…
Q: na-Mae is being charged "12.99% APR compounded daily." What effective annual rate is she being…
A: Effective interest rate is interest rate after considering the impact of compounding on the interest…
Q: Engineering Economics Prepare a sinking fund schedule if Mrs. Lebwrong Blames would like to…
A:
Q: d) A share will pay its first dividend of $2.50 in 3 years. The annual dividend will grow 10% p.a.…
A: Dividend discounting model is a model associated with discounting of future dividend at present in…
Q: 1. Find the values for the following: a. An initial $500 compounded for 1 year at 6 percent. b. An…
A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…
Q: A man uses a loan program for small businesses to obtain a loan to help expand his vending machine…
A: The simple interest is one of the method of calculating interest. In simple interest, the interest…
Q: FV(Quarterly.) = $100(1.03)20
A: Future value : Future value is the value of the asset at a future date compounded at a particular…
Q: years, while most of the other project's cash flows occur in the later years. The two NPV profiles…
A: NPV is net present value is the difference between the present value of cash flow and initial…
Q: b) A bond was issued on 1 July 2018. Below is the timeline of all cash flows payable by the bond…
A: A bond is a debt instrument that provides periodic interest to the owner and the face value at…
Q: The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal…
A: Here, To Find: Interest paid in month 37 =?
Step by step
Solved in 2 steps with 2 images
- 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.During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossAt 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 Credit
- 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)Problem 5: Color Company began business in January of 2021. During the year, Color purchased a portfolio of securities listed below. In its December 31, 2021 balance sheet, Color appropriately reported a P300,000 debit balance in its "Unrealized gain/loss" account. The composition of the securities did not change during the year 2022. Pertinent data are as follows: Security BE (FVPL) BI (FVOCI) KO (FVOCI) Cost P2,000,000 3,600,000 3,900,000 P9,500,000 Market Value, December 31, 2022 P2,750,000 3,250,000 4,000,000 P10,000,000 5.1 How much is the carrying value of Investment on December 31, 2021? 5.2 How much is the unrealized gain or loss that should presented in the Equity section of the Balance Sheet on December 31, 2022?The following information is available for Stellar Company at December 31, 2020, regarding its investments. Securities Cost Fair Value 500 shares of Runner Corporation common stock $25,000 $39,000 7,200 shares of Sher-tor Corporation preferred stock 659,000 626,000 $684,000 $665,000 (a) Prepare the adjusting entry (if any) for 2020, assuming the securities are classified as trading. (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.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount (b) Prepare the adjusting entry (if any) for 2020, assuming the securities are classified as available-for-sale. (Credit account titles are automatically…
- Pharoah Company has these data at December 31, 2022, the end of its first year of operations. Debt Securities Trading Available-for-sale (a) Cost $119,700 100,300 The available-for-sale securities are held as a long-term investment. Fair Value $125,700 98,300 Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale 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.) No. Account Titles and Explanation (1) Debit CreditSheridan 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. $ 9200The following information is available for Tamarisk Corporation's available-for-sale debt securities at December 31, 2020. Security Cost Fair Value X $40,120 $35,400 28,320 37,760 $68,440 $73,160 Prepare the adjusting entry to record the securities at fair value at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
- Marigold 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…Blossom SE has the following data at December 31, 2020. Securities Cost Fair Value Trading €118,200 €126,300 Non-trading 104,000 92,900 The non-trading securities are held as a long-term investment. This is the first year of the company's operations. Prepare the adjusting entries to report each class of securities at fair value. (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 O for the amounts.) Account Titles and Explanation Debit CreditCurrent Attempt in Progress In its first year of operations, Sheridan Corporation purchased available-for-sale debt securities costing $68,500 as a long-term investment. At December 31, 2022, the fair value of the securities is $63.650. 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 O for the amounts.) Date Dec. 31 Account Titles and Explanation Debit Credit