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3 years ago

Which type of account typically has very high liquidity, low or no interest, and low minimum balance?

1 answer:

7 0

I would say that it is a CHECKING ACCOUNT. The answer for this would be option A. This type of account can be accessed anytime which makes its liquidity very high, but on the other side, this has very low interest and the minimum balance required is also low. Hope this helps.

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In Year 1, Rona Corp. issued 5,000 shares of $10 par value common stock for $100 per share. In Year 7, Rona reacquired 2,000 sha

Semmy [17]

Answer:

D. APIC $180,000; R/E $100,000

Explanation:

Treasury stock is the share of the company issued earlier and bought-back. It can be reissued and cancelled by the company.

Journal Entry for Reacquirement of shares

Dr. Treasury Stcok (2,000 x $150 ) $300,000

Cr. Cash $300,000

Cancellation of Treasury shares

Dr. Common Shares ( 2,000 x $10 ) $20,000

Dr. APIC -Common share (2,000 (100-10)) $180,000

Dr. Retained Earning $100,000

Cr. Treasury Stock $300,000

7 0

2 years ago

Name and describe the four basic types of fees and cost a franchise owner must pay

laila [671]

Light,water bills yeah that’s all

8 0

3 years ago

A one-month European call option on a non-dividend-paying stock is currently selling for $1. The stock price is $47, the strike

REY [17]

Answer:

The price of the put-option on the same stock with the same strike price is $3.75.

Explanation:

To find the price of the put option on an underlying asset given the price on the call option's price for the same underlying asset with the same strike price is given, we apply put-call parity model.

Put call parity model: p = K x e^(-rT) + c - St .

in which: p: put option's price;

K: underlying asset's strike price;

r: risk-free rate;

T: time to maturity denominated in year;

c= call option's price;

St = spot price of underlying asset .

So, p = 50 x e^(-0.06 x 1/12) + 1 - 47 = $3.75 .

4 0

3 years ago

Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life, with a

dimulka [17.4K]

Answer:

Depreciation 2021 = $10,000

Book Value 2021 = $35,000

Explanation:

Straight Line method charges a fixed amount of depreciation during the use of an asset.

Depreciation Charge = (Cost - Residual Value) ÷ Estimated Useful Life

Therefore,

Depreciation 2021 = ($45,000 - $5,000) ÷ 4

= $10,000

Book Value = Cost - Accumulated Depreciation to date

Therefore,

Book Value 2021 = $45,000 - $10,000

= $35,000

6 0

3 years ago

You are going to form a portfolio with stocks A & B with the following information: Stock Expected Return Standard Deviation

nikitadnepr [17]

Answer:

portfolio's standard deviation = 0.3256

Explanation:

Stock Expected Return Standard Deviation Wi

A 10% 30% 0.2

B 20% 40% 0.8

covariance = [(10% - 10%) x (20% - 20%)] / (2 - 1) = 0

portfolio's standard deviation = (stock A's Wi² x variance) + (stock B's Wi² x variance) + (2 x covariance x weight A x weight B)

portfolio's standard deviation = √{(0.2² x 0.09) + (0.8² x 0.16) + 0} = √(0.0036 + 0.1024) = √0.106 = 0.3256

3 0

3 years ago