Employers may review your _______ to learn more about you.

Geraldine Parker, the owner of Gi Grs Dance Studio, Inc., started the business by investing $10,000 cash and donating a building

lesantik [10]

Answer:

The correct option is B,common stock 30,000 cash 10,000 and building 20,000

Explanation:

Geraldine Parker's contributions to the business -that is both cash and building are seen as his capital invested in the business.Invariably, it is assumed the new business owes Geraldine Parker the worth of resources invested

Appropriate double entries for the transaction are shown below

Dr Cash $10000

Dr Building $20000

Cr Capital $30000

This is the capital as at the start of the business,it is also possible that Geraldine Parker contributes additional capital which adds to existing capital.

Also,the profits made increases the stake of the owner in the business and drawings should e deducted from the capital in case the owner withdraws cash or goods from the business.

6 0

3 years ago

A mother earned $ 7500.00 from royalties on her cookbook. she set aside 20% of this for a down payment on a new home. the bala

Marina CMI [18]

Amount of money deposited in the two accounts is 80% of 7500$.
Amount of money in the two accounts = 0.8 * 7500 = 6000$

Now assume that the amount deposited in CD account is m and the amount deposited in the saving bond is n.
m + n = 6000
Therefore: m = 6000 - n ................> equation I

Now we write another equation expressing the savings:
0.04m + 0.07n = 360 ............> equation II

Substitute with equation I in equation II:
0.04 (6000-n) + 0.07n = 360
240 - 0.04n + 0.07n = 360
0.03n = 120
n = 4000 $

Substitute with n in equation I to get the value of m as follows:
m = 6000 - n = 6000 - 4000 = 2000

Based on these calculations:
The amount of money deposited in the CD = 2000$
The amount of money deposited in the saving account = 4000$

8 0

3 years ago

A fixed asset with a cost of $31,588 and accumulated depreciation of $28,429.20 is sold for $5369.96. What is the amount of gain

Artist 52 [7]

Answer:

$2,238.16

Explanation:

In the disposal of assets, gain or loss will be a comparison between the book value and the selling price.

Book value is the asset costs minus accumulated depreciation.

in this case, the book value will be

= Asset cost - Depreciation

= $31,588- $28,429.20

=$3,158.8 is the book value.

Gain or loss = selling price- book value

=$5,369.96 - $3,158.8

=$2,238.16

A gain of$2,238.16 will be gain from that sale.

4 0

3 years ago

Asset A and B have expected returns of 5% and 3% per year respectively. Their annual volatilities are both 20% and the correlati

Novay_Z [31]

Answer:

1. Weight of A=0.5, Weight of B= 0.5

2. Asset A has the highest shape ratio. The weight of A and B in the optimal risky portfolio that has the highest shape ratio is:

Weight of A= 0.105, Weight of B= 0.895

Explanation:

Expected return of Asset A= 5%Expected return of Asset A= 5%

Expected return of Asset B= 3%

Annual volatilities of Asset A= 20%

Annual votalities of Asset B= 20%

1. Correlation coefficient = 30% = 0.3 < 1

Risk Free Rate = 1% =0.01

1. Weight of A and B in portfolio with minimal risk is:

Weight of A= β^2B - Cov (XAXB) /β^2A + β^2B - 2Cov (XAXB)

Therefore,

CovXAXB = PAB (Volatility of A) (Volatility of B)

= 0.3 × 0.2 × 0.2

= 0.012

Hence,

Weight of A= (0.2)^2 - 0.012 / (0.2)^2 + (0.2)^2 - 2(0.012)

Weight of A= 0.04 - 0.012 / 0.04 + 0.04 - 0.024

= 0.028/ 0.08 - 0.024

= 0.028/ 0.056

=0.5

Weight of A = 0.5

Weight of B= 1 - Weight of A

Weight of B= 1 - 0.5

Weight of B= 0.5

2. Shape ratio of A= RA - Rf / β

= 0.05 - 0.01 / 2

= 0.04/2

= 0.02 =20%

Shape ratio of B= RB - Rf / β

= 0.03 - 0.01/ 2

0.02 / 2

=0.01 = 10%

So, Asset A has the highest shape ratio

Cov (XAXB) = PAB (Volatility of A) (Volatility of B)

= 0.03 × 0.2 × 0.1

= 0.006

Weight of A= β^2B - Cov (XAXB) /β^2A + β^2B - 2Cov (XAXB)

Weight of A = (0.1)^2 - 0.006 / (0.2)^2 + (0.1)^2 - 2(0.006)

= 0.01 - 0.006 / 0.04 +0.01 - 0.012

= 0.004/ 0.05 - 0.012

= 0.004/ 0.038

= 0.105

Weight of A = 0.105

Weight of B= 1 - 0.105

Weight of B= 0.895

3 0

3 years ago

Higher nominal interest rates ______ the amount of money demanded and higher real income ______ the amount of money demanded.

Ulleksa [173]

Answer:

decreases

increases

Explanation:

Nominal interest rate is real interest rate plus inflation rate. If nominal interest rate rises, people would prefer to save their money and so the demand for money would fall.

Real income is income adjusted for price level changes. The higher the real income,the higher the purchasing power, the higher the demand for money.

3 0

3 years ago