NEED 2 Accounting Questions DUE ASAP

1. 1. On March 1, Johnson Inc. purchased 500 shares of Thomas Company stock when Thomas’ stock was selling for $20 per share. Johnson plans to hold this stock for a short time and hopefully sell it for a gain.
 On December 31, Johnson prepares its financial statements. Thomas’ stock is selling for $18 per share.

1. A. Determine the unrealized gain or loss Johnson would report on its income statement.

1. B. Show how the investment would be reported on Johnson’s balance sheet.

1. 2. Knockoff Corporation makes a videogame unit known as the Gii. During the month of June, the following transactions occurred. Record any necessary journal entries for a–e.

1. a. Knockoff purchased $300,000 of raw materials inventory on account.

1. B.The company incurs salary expense of $45,000, which will not be paid until the beginning of July.

1. C. Knockoff owes the IRS and other government entities $120,000 in taxes.

1. D. OK Buy places an advance order for Giis and pays Knockoff $23,000. The Giis will be shipped in July.

1. E. Knockoff owes a local bank $4,000 in interest.

1. F. If Knockoff has $800,000 in current assets, and all current liabilities are given in a–e above, what is Knockoff’s current ratio?

G. Knockoff’s main competitor, PlayItAgain, has a current ratio of 2.1. You are trying to decide which company to invest in. Which current ratio do you prefer? Why?