The correct answer is $500.
An adjusted trail balance is prepared at the end of the accounting period. On this statement you will have what the value of the supplies in inventory is on the last day of the accounting cycle. In this example there are $500 worth of supplies left, which is why it is the correct answer.
Answer:
Dr mortgage payable $635.52
Dr interest expense $641.67
Cr cash $1,277.19
Explanation:
The first repayment made on the mortgage is $1,277.19,this amount can be broken into interest payment on the mortgage as well as the repayment of the principal of $110,000.
interest for first month=$110,000*7%*1/12=$641.67
Invariably the payment made comprises of $635.52 ($1,277.19-$641.67) principal repayment and interest payment of $641.67
The entries would to debited mortgage payable with $635.52 and interest expense with $641.67 while cash is credited with $1,277.19
Answer:
a.
Investment X.
Investment X offers to pay $4,500 per year for 9 years.
Discount rate of 7%
This is therefore an annuity as it is a constant figure.
Present value = 4,500 * Present value Interest factor for 9 years, 7%
= 4,500 * 6.5152
= $29,318.40
Investment Y
Present Value = 6,200 * Present value Interest factor for 5 years, 7%
= 6,200 * 4.1002
= $25,421.24
b. Investment X
Discount rate is 21%.
Use Present Value of Annuity formula as attached table does not have factor for 21%.
= $17,574.45
Investment Y
= $18,141.10
Answer:
Only statement 2 is correct as the likely range of returns of security A would be higher as it has a higher standard deviation which means that its returns deviate more from the mean than security B, which implies that the range of returns of security A is likely to be higher than the range of return on security B.
Statement 1 is wrong because a security has higher risk premium when it has a higher Beta, which means that when the standard deviation is linked to the market returns than it may have a higher risk premium, but just on the basis of standard deviation we can not make that decision.
Statement 3 is wrong because we do not know the risk premiums of both the stocks so we cannot calculate the sharpe ratio as is calculated by dividing the excess returns by the standard deviations of stocks.
Explanation:
Answer:
the expected return on the portfolio is 11.55%
Explanation:
The computation of the expected return on the portfolio is shown below:
= Respected Probabilities × respected return
= (0.35 × 0.09) + (0.2 × 0.15) + (0.45 × 0.12)
= 0.0315 + 0.03 + 0.054
= 0.1155
= 11.55%
hence, the expected return on the portfolio is 11.55%