Search & Filtering
1, On January 1, year 2, Investor Company made long term investments of 400,000 in the common stock of several publicly owned corporations. The aggregate market value of the investments was 360,000 at the end of year 2 and 384, 000 at the end of year 3. On October 20, year 4 Investor Company sold long term investment that cost 200,000 for 150,000 and the aggregate market value of the remaining investments (costs 200,000) was 190,000.
Required
A, Present the Journal entries to record the above transactions and information.
B, Determine the balance of (i) the investment, (ii) the allowance, and (iii) the unrealized loss account at the end of year 2, year 3 and year 4.
C, Show how the investment in marketable equity securities and the unrealized loss are presented in the balance sheets of investor Company at the end of year 2, year 3, and year 4.
Derive the equations of the expansion path, given the following production
function: loge W = O.4loge M + O.6Ioge N .
where, W denotes production quantity and M and N are quantities of factor inputs:
the respective prices of N and Mare pn and pm
Why is accounting considered a language of business? How is it related to management
process?
Dec. 1 Mr. John transferred cash from his personal account to the business to be used in
the business, Birr 150,000.
“ 1 Paid five months’ rent in advance, Birr 30,000
“ 1 Paid annual Insurance premium of Birr 7,200
“ 11 Purchased a truck for Birr 110,000 by paying Birr 60,000 Cash and giving a
notes payable for the difference.
“ 12 Purchased equipment on account, Birr 11,000
“ 13 Purchased supplies on account Birr 2400.
“ 14 Paid insurance premiums of Birr 8100
“ 15 Received cash for services completed Birr 36,000.
“ 18 Paid salaries of Birr 9000.
“ 21 Paid its liabilities for the purchase of equipment made on December 12
“ 24 Provided Service on account, Birr 52,000
“ 27 Paid utilities expense Birr 12,500.
“ 27 Paid miscellaneous expenses Birr 1,200.
“ 28 Received cash from customers on account birr 24,000
“ 30 Paid salaries to employees Birr 5,000
“ 30. The owner withdrew Birr 2,000 for personal use.
Given that the demand for good X is more elastic in country A than country B while the
supply conditions are the same, answer the following questions.
a) Compare the before trade price of X in country A and B.
b) Which country will be importer of X and which country will be exporter?
c) What will happen to the price of X in country A and country B during the process
of international trade?
d) What does the price change in country A result on quantity demand, quantity
supply of domestic producers, and supply?
e) What does the price change in country B result on quantity demand, quantity
supply of domestic producers, and demand?
The Production Possibility Curve is a constrained diagram, showing the maximum production capacity of a country". Using examples of your choice, discuss the validity of the statement.
Explain why Microeconomic and Macroeconomic issues should be treated at different levels
Using examples of your choice, discuss whether the desirability of the worldwide movement towards the market economy and away from the planned economy
If a firm is operating in the area of constant returns to scale, what will happen to average total costs in the short run if the firm expands production? Why? What will happen to average total costs in the loge run? Why?
Read the case to answer the following questions:
Case: The Ford Pinto | Business Ethics (uncg.edu)
Suppose you are trying to determine whether to go ahead with the existing Pinto design or to delay production and redesign. Taking a shareholder approach (Friedman), what action should you take given the information you have at the time of the decision and why? Taking a stakeholder approach (Freeman), what action should you take, and why?
Word Limit: (150 words)
