Requirement 1:
Concept Introduction:
Available for Sale Securities:
These are those equity and debt securities which are not categorized as held-to-maturity or trading securities. They are purchased by the organization for dividend income, interest income or gain from increasing fair value of these securities.
Journalize the transaction:
Any financial transactions entered into by an organization are first entered into the journals via dual entry system to account for a debit and credit transaction. Double bookkeeping system envisages that each transaction has dual effect on company accounts and every transaction is recorded to account for these effects.
To journalize the entries for recording the transaction of Rose Co.
Requirement 2:
The year-end financial statements of the company reflect the fair value of the available securities of the company as on date.
A table showing year end cost and fair value of the short term stock investments of the company.
Requirement 3:
At the end of the year, the
Year end adjustment entry to record the year-end fair value of the short-term stock investments.
Requirement 4:
The
Requirement 5
The effect of short term investment in the income statement and balance sheet for an organization.
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Chapter 15 Solutions
FUND.ACCT.PRIN.-CONNECT ACCESS
- Can you please solve this questionsarrow_forwardThe company's gross marginarrow_forwardits Elite Brands Company uses standard costs for manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data: Production volume 6,500 units 600 hours Budgeted variable overhead costs $15,000 Budgeted direct labor hours At the end of the year, actual data were as follows: Production volume 4,000 units 495 hours Actual variable overhead costs $15,400 Actual direct labor hours How much is the standard cost per direct labor hour for variable overhead? a. $25.00 per direct labor hour b. $37.50 per direct labor hour c. $30.30 per direct labor hour d. $25.67 per direct labor hourarrow_forward
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