Novak Corporation purchased 380 shares of Sherman Inc. common stock for $12,900 (Novak does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Novak's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)

A. Dr Equity Investments (Trading)$12,900

Cr Cash $12,900

B. Dr Cash $1,235

Cr Dividend Revenue $1,235

C. Dr Fair Value Adjustment (Trading) $1,350

Cr Unrealized Holding Gain or Loss-Income $1,350

Explanation:

A. Preparation of Novak's journal entries to record the purchase of the investment

Dr Equity Investments (Trading)$12,900

Cr Cash $12,900

B. Preparation of Novak's journal entries to record the dividends received

Dr Cash $1,235

($3.25 per share*380)

Cr Dividend Revenue $1,235

C. Preparation of Novak's journal entries to record the fair value adjustment

Dr Fair Value Adjustment (Trading) $1,350

Cr Unrealized Holding Gain or Loss-Income $1,350

[($37.50 per share*380)-$12,900]

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: