Answer:
Answer is Mild difference.
Explanation:
I hope it's helpful!
Answer:
Date Account title and explanation Debit Credit
March 1 Equity investment $32,000
($612,000/17%)*8% - $256,000)
Unrealized holding gain $32,000
(To adjust the value of equity investment)
Note: On 1 march, value of the investment value is increased which is unrealized based on 31 December fair value
Answer:
Th answer is: net income for year 2 is $45,000
Explanation:
We must first determine the equity for both years (equity= assets - liabilities)
- Equity year 1 = $940,000 - $300,000 = $640,000
- Equity year 2 = $995,000 - $270,000 = $725,000
Then we calculate the change in equity:
- change in equity = $725,000 - $640,000 = $85,000
Finally to determine the net income or year 2 we use the following formula:
Net income (Y2)= change in equity - additional investments + dividends paid
net income (Y2) = $85,000 -$73,000 + $33,000 = $45,000
Answer:
From the attached excel file, we havee:
Revenue and spending income from operations variance = $4,566 Favorable
Activity income from operations variance = -$5,860 Unfavorable
Explanation:
Note: See part a of the attached excel file for the flexible budget performance report that shows both revenue and spending variances and activity variances for September.
Also Note: See parts b and c of the attached excel file for the calculations of revenue and spending variances and activity variances respectively for September.
Answer:
$0
Explanation:
Capital assets are useful items that a business intends to keep beyond the current financial year. They are assets held for personal or investment purposes. Capital assets exclude items meant for sale in the current financial period.
Capital assets are used in the business operations to generate more revenues for the company. They are assets with a use-life that is greater than one year. Castle City General purchased a computer to be used by the city's treasurer. Castle City General will not use this item; hence it will not help in generating any revenues. The Furniture is for the mayor's office, and not the Castle City operations. These two purchases will not be included in Castle City books as capital expenditures.