ADP Inc. carries the following debt investments on its books at December 31, 2020, and December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ADP Inc. carries the following debt investments on its books at December 31, 2020, and December 31, 2021. All securities were purchased during 2020. Trading Securities: Company A Company B Company C Company Available-for-Sale Securities: Company X Company Y Company Cost $25,000 $13,000 $35,000 Cost $210,000 $50,000 Value, Dec. 31, 2020 Value, Dec. 31, 2021 $13,000 $20,000 $20,000 $20,000 $30,000 $25,000 Value, Dec. 31, 2020 Value, Dec. 31, 2021 $130,000 $50,000 $70,000 $ 60,000 Required: (1.) Prepare the necessary journal entries for ADP on December 31, 2020, and December 31, 2021. (2.) What net effect would the valuation of these debt investments have on 2020 net income? (3.) What net effect would the valuation of these debt investments have on 2021 net income? ADP Inc. carries the following debt investments on its books at December 31, 2020, and December 31, 2021. All securities were purchased during 2020. Trading Securities: Company A Company B Company C Company Available-for-Sale Securities: Company X Company Y Company Cost $25,000 $13,000 $35,000 Cost $210,000 $50,000 Value, Dec. 31, 2020 Value, Dec. 31, 2021 $13,000 $20,000 $20,000 $20,000 $30,000 $25,000 Value, Dec. 31, 2020 Value, Dec. 31, 2021 $130,000 $50,000 $70,000 $ 60,000 Required: (1.) Prepare the necessary journal entries for ADP on December 31, 2020, and December 31, 2021. (2.) What net effect would the valuation of these debt investments have on 2020 net income? (3.) What net effect would the valuation of these debt investments have on 2021 net income?
Expert Answer:
Answer rating: 100% (QA)
To prepare the necessary journal entries for ADP Inc on December 31 2020 and December 31 2021 we nee... View the full answer
Related Book For
Holt McDougal Larson Geometry
ISBN: 9780547315171
1st Edition
Authors: Ron Larson, Laurie Boswell, Timothy D. Kanold, Lee Stiff
Posted Date:
Students also viewed these accounting questions
-
In Example 3, change the coefficient of x 2 in the first equation from 2 to 1 and then solve the system. Data from Example 3 By addition or subtraction, solve the system of equations We note that if...
-
Crane Inc. has a defined-benefit pension plan covering its 304 employees. Crane agrees to amend its pension benefits. The prior service cost associated with the amendment is $250000. The employees...
-
FKG Inc. carries the following debt investments on its books at December 31, 2015, and December 31, 2016. All securities were purchased during 2015. Trading Securities: Company A Company Cost Value,...
-
Please do this two questions, please step by step 9. 11. 0/1 points | Previous Answers SEssCalcET1 12.1.020. Calculate the iterated integral. SS 5xyx + y dy dr = || Need Help? Read It Submit Answer...
-
A long uniform rod of length L and mass M is pivoted about a horizontal, frictionless pin through one end. The rod is released from rest in a vertical position, as shown in Figure P10.61. At the...
-
DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter's explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share...
-
A study analyzed the sleep habits of college students. The study found that the mean sleep time was 6.8 hours, with a standard deviation of 1.4 hours. Random samples of 100 sleep times are drawn from...
-
The March 4, 2010, edition of the Wall Street Journal Online contains an article by Jeffrey McCracken and Tom McGinty entitled With Fistfuls of Cash, Firms on Hunt. Instructions Read the article and...
-
Paypal was rumored to be in talks to acquire Pinterest for a 25% premium. Assume that the two companies reached agreement on that basis. Using the stock prices given below (assume that the premium...
-
Metro Land is a country located on a 2D Plane. They are having asummer festival for everyone in the country and would like tominimize the overall cost of travel for their citizens. Costs oftravel are...
-
The GIFT Debating Society is planning to arrange a national debating competition at campus. They are considering inviting people from all over Pakistan for this competition. Many people had applied...
-
What is the amount of overapplied or underapplied overhead Hudson, Inc. has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year. If direct...
-
Five annual payments of $60,000 will be needed to generate a future worth F at an annual interest rate equal to 0.082, calculate the value of F.
-
Produce the following line of output, with the sales total stored in the variable salesTotal: Totals sales are $45,673.67 Your answer here: 2. Determine if the variable payRate is greater than 10....
-
Gavaskar of Bombay sent 100 TV sets to Kapil of Chandigarh on consignment basis. The cost price of each set is ~ 5,000. Gavaskar paid ~ 100 for cartage, ~ 1,500 for railway freight and ~ 400 for...
-
Consider the balance sheet entries and other financial data for Rhino Company below. All are in market value. Sean is the Chief Financial Officer (CFO) for Rhino. Sean is going to execute a stock...
-
Write the general quadratic equation y2 - 8y - 4x + 28 = 0 in standard form. Determine the vertex, focus, and directrix of the parabola defined by this equation. Sketch a graph.
-
Find the side length of the square with the given area. Write your answer as a radical in simplest form. A 1008 mi =
-
Graph the image of the polygon after the reflection in the given line. y = 3 A B 1 y D C X
-
Tell whether the angles or sides are corresponding angles, corresponding sides, or neither. BC and KL
-
Is an oscillating object in translational equilibrium?
-
How far above Farth's surface must a \(10,000-\mathrm{kg}\) boulder be moved to increase the mass of the Earthboulder system by \(2.50 \mathrm{mg}\) ? Assume the same ratio of energy change to mass...
-
Show that for small displacements the restoring force exerted on part 2 of the displaced string in Figure 15.14 is linearly proportional to the displacement of that part from its equilibrium...
Study smarter with the SolutionInn App