The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2018. The
company buys debt securities, not intending to profit from
short-term differences in price and not necessarily to hold debt
securities to maturity, but to have them available for sale when
circumstances warrant. Ornamental’s fiscal year ends on December
31. No investments were held by Ornamental on December 31,
2017.
| Mar. | 31 | Acquired 8% Distribution Transformers Corporation bonds costing $550,000 at face value. | ||
| Sep. | 1 | Acquired $1,125,000 of American Instruments’ 10% bonds at face value. | ||
| Sep. | 30 | Received semiannual interest payment on the Distribution Transformers bonds. | ||
| Oct. | 2 | Sold the Distribution Transformers bonds for $590,000. | ||
| Nov. | 1 | Purchased $1,550,000 of M&D Corporation 6% bonds costing at face value. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
| American Instruments bonds | $ | 1,060,000 | |
| M&D Corporation bonds | $ | 1,625,000 | |
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2018, as well as any adjusting entries
necessary at year end. For any sales, prepare entries to update the
fair-value adjustment, record any reclassification adjustment, and
record the sale.
2. Indicate any amounts that Ornamental Insulation
would report in its 2018 income statement, 2018 statement of
comprehensive income, and 12/31/2018 balance sheet as a result of
these investments.
In: Accounting
calculate the taxable amount of social security. John and Jean are married filing jointly.
They had the following amounts of income for 2018.
Taxable interest income $10,000
Non-taxable interest income $20,000
Pension income $15,000
Social security benefits $30,000
In: Accounting
A 26.51 gram sample of cobalt is
heated in the presence of excess iodine. A metal
iodide is formed with a mass of
140.7 g. Determine the empirical formula of the
metal iodide.
Enter the elements in the order Co, I
| empirical formula = |
In: Chemistry
A 44.39 gram sample of iron is heated in the presence of excess oxygen. A metal oxide is formed with a mass of 63.46 g. Determine the empirical formula of the metal oxide. Enter the elements in the order Fe, O empirical formula =
In: Chemistry
The size effect, value effect and day of the week effect represent three empirical challenges to market efficiency hypothesis. Drawing from empirical research evidence, explain how these anomalies challenge the market efficiency hypothesis.
In: Accounting
According to empirical evidence, nominal interest rates are procyclical. They rise when the economy booms and they fall during recessions. Is this empirical evidence consistent with DAD-DAS models? Explain and use graphs to illustrate your answer.
In: Economics
In: Advanced Math
On Jan. first, 2018, Snuff Company accepts 60000 non-interest bearing note from a customer for the sale of goods. The note is to be paid in 3 equal installments every Dec. 31st (first payment on Dec. 31, 2018). An assumed interest rate of 10% is implied. Round installment payments to the nearest dollar.
pt 1: Determine the PV of the note. Show all computations or calculator imputs.
pt 2: Prepare an amortization table in Excell to show the revenue recognized each year
pt 3: Prepare the journal entries for the dates listed below.
jan 1, 2018
Dec 31,2018
Dec 31, 2019
In: Accounting
Problem B
At the beginning of 2018, Pineapple Inc. acquired a machine by issuing a $14,400 3-year non interest-bearing note. The machinery had a book value of $4,350 in the seller's book. Although Pineapple felt that it could get a similar machine for less than $14,400, it was satisfied, since it would normally have to borrow at 10%. The principal of the note is to be repaid at $4,800 per year, beginning on 12/31/2018.
Required:
Prepare all the journal entries in books of Pineapple Inc. relating to this note in the year 2018. Specifically, what do you use as the interest rate in calculating present value of the machinery?
In: Accounting
A. A 13.98 gram sample of an organic compound
containing C, H and O is analyzed by combustion analysis and
20.85 grams of CO2 and
6.402 grams of H2O are produced.
In a separate experiment, the molar mass is found to be
118.1 g/mol. Determine the empirical formula and
the molecular formula of the organic compound.
| empirical formula = |
| molecular formula = |
B. When 2.543 grams of a hydrocarbon,
CxHy, were burned in a combustion analysis
apparatus, 7.979 grams of CO2 and
3.267 grams of H2O were produced.
In a separate experiment, the molar mass of the compound was found
to be 28.05 g/mol. Determine the empirical formula
and the molecular formula of the hydrocarbon.
| empirical formula = |
| molecular formula = |
In: Chemistry