Reference no: EM132835325
Questions -
Q1. The Receivables account of Jennie Co. shows an amortized cost of $1,950,000 on December 31, 2019.
The following information presents the subsidiary details:
Trade accounts receivable - $725,000
Trade notes receivable - 100,000
Installments receivable, normally due one or two years - 300,000
Customers' accounts reporting credit balances arising from sales returns - (30,000)
Advance payments for purchase of merchandise - 150,000
Customers' accounts reporting credit balances arising from advance payments - (20,000)
Cash advances to subsidiary - 400,000
Claims from insurance company - 15,000
Subscription receivable due in 180 days - 300,000
Accrued rent receivable - 10,000
What amount should be presented as trade and other receivables under current assets?
Q2. Aaron Company makes use of the perpetual inventory method to account for its silver purchases. They use average costing to keep a close eye on its purchase costs. Based on the information below, what amount should the ending cost of the silver inventory be?
|
Date
|
Particulars
|
Grams
|
Cost per Gram
|
|
June 1
|
Beginning balance
|
1,200
|
40.50
|
|
June 5
|
Purchase
|
2,400
|
40.80
|
|
June 10
|
Purchase
|
2,700
|
41.20
|
|
June 16
|
Sale
|
6,000
|
|
|
June 24
|
Purchase
|
2,000
|
41.00
|
Q3. In March of the year 2020, Jopay Company bought nontrading equity investments which are irrevocably designated at FV-OCl. The balance in the unrealized gain/(loss) on these securities was $200,000 on December 31, 2020. During 2020, stock CC was sold for $1,100,000. Pertinent information on December 31, 2020 are the following:
|
|
Cost
|
Market Value
|
|
AA
|
$2,100,000
|
$1,600,000
|
|
BB
|
1,850,000
|
2,000,000
|
|
CC
|
1,050,000
|
900,000
|
How much should Jopay Company report as unrealized holding loss in its statement of changes in stockholder' s equity for the year 2021?