Long-Term Investments: Long-term investments are the part company's long-term assets that are reflected in the company's balance sheet as assets of the company. The long -term investments are subject to maturity only after minimum period of one year .These investments include bonds, investments in real estate, acquiring goodwill or copyrights. Available-for-Sale Debt Securities: The available-for-sale debt securities are an instrument of debt of easily identifiable fair values and are recorded in the balance sheet of the company. The unrealized gain or loss through such investments is accounted within the equity part of the balance sheet its value appears after or sometimes before the retained earnings of the company. Also, the fluctuations in the trading securities as unrealized gains or losses are recorded in income statement whereas the fluctuations in available-for-sale securities which generate unrealized gains or losses are recorded in a separate account called unrealized gain/loss account under other comprehensive income head. Journal Entries: It is a basic book of records in which transactions are recorded at a primary level in a chronological order so as to account for the transactions being entered into by the business over an accounting period. Accounting rules regarding journal entries: Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited. Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited. To prepare: Journal entry .

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Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 7DQ

To determine

Long-Term Investments:

Long-term investments are the part company's long-term assets that are reflected in the company's balance sheet as assets of the company. The long -term investments are subject to maturity only after minimum period of one year .These investments include bonds, investments in real estate, acquiring goodwill or copyrights.

Available-for-Sale Debt Securities:

The available-for-sale debt securities are an instrument of debt of easily identifiable fair values and are recorded in the balance sheet of the company. The unrealized gain or loss through such investments is accounted within the equity part of the balance sheet its value appears after or sometimes before the retained earnings of the company. Also, the fluctuations in the trading securities as unrealized gains or losses are recorded in income statement whereas the fluctuations in available-for-sale securities which generate unrealized gains or losses are recorded in a separate account called unrealized gain/loss account under other comprehensive income head.

Journal Entries:

It is a basic book of records in which transactions are recorded at a primary level in a chronological order so as to account for the transactions being entered into by the business over an accounting period.

Accounting rules regarding journal entries:

Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.

Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited.

To prepare: Journal entry.

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Use the information provided to answer following question Larry Ltd. is a registered VAT taxpayer. His business transactions for the months of January to March are included below. The VAT rate is 12.5%. All the amounts given are VAT inclusive. Months Sales Purchases Imports January $50,625 $30,375 $17,662.50 February $63,337.50 $38,475 $25,087.50 March $67,500 $52,312.50 $22,612.50 What is the Larry Ltd. VAT input tax for the 3 months period? A.$7,262.50 B.$13,462.50 C.$20,725 D.$20,162.50

Accounting problem

The tax authorities of Country A implemented several tax reforms with the main objective of achieving simplicity in the tax process. All of the following will help Country A in achieving their objective except: A.Reducing the number of lines on the tax form so that taxpayers don’t have to spend as much time filling out forms. B.Reducing the number of pages in the tax law so that it is easier to understand. C.Eliminating loopholes that some taxpayers use to avoid paying taxes. D.Using fewer forms and more user friendly instructions so that there is less hassle, less agony, and more free time.

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 7DQ

To determine

Long-Term Investments:

Long-term investments are the part company's long-term assets that are reflected in the company's balance sheet as assets of the company. The long -term investments are subject to maturity only after minimum period of one year .These investments include bonds, investments in real estate, acquiring goodwill or copyrights.

Available-for-Sale Debt Securities:

The available-for-sale debt securities are an instrument of debt of easily identifiable fair values and are recorded in the balance sheet of the company. The unrealized gain or loss through such investments is accounted within the equity part of the balance sheet its value appears after or sometimes before the retained earnings of the company. Also, the fluctuations in the trading securities as unrealized gains or losses are recorded in income statement whereas the fluctuations in available-for-sale securities which generate unrealized gains or losses are recorded in a separate account called unrealized gain/loss account under other comprehensive income head.

Journal Entries:

It is a basic book of records in which transactions are recorded at a primary level in a chronological order so as to account for the transactions being entered into by the business over an accounting period.

Accounting rules regarding journal entries:

Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.

Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited.

To prepare: Journal entry.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 7DQ

To determine

Long-Term Investments:

Long-term investments are the part company's long-term assets that are reflected in the company's balance sheet as assets of the company. The long -term investments are subject to maturity only after minimum period of one year .These investments include bonds, investments in real estate, acquiring goodwill or copyrights.

Available-for-Sale Debt Securities:

The available-for-sale debt securities are an instrument of debt of easily identifiable fair values and are recorded in the balance sheet of the company. The unrealized gain or loss through such investments is accounted within the equity part of the balance sheet its value appears after or sometimes before the retained earnings of the company. Also, the fluctuations in the trading securities as unrealized gains or losses are recorded in income statement whereas the fluctuations in available-for-sale securities which generate unrealized gains or losses are recorded in a separate account called unrealized gain/loss account under other comprehensive income head.

Journal Entries:

It is a basic book of records in which transactions are recorded at a primary level in a chronological order so as to account for the transactions being entered into by the business over an accounting period.

Accounting rules regarding journal entries:

Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.

Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited.

To prepare: Journal entry.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter C, Problem 7DQ

To determine