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3 years ago

Identifying effects of transactions using the accounting equation LO PI

Business

1 answer:

Luda [366]3 years ago

5 0

Answer:

A. Asset as cash will increase by $59,000, asset in equipment will increase $14,000

B. Asset side in increased and decreased

C. Asset and liability will increase by $11,000

D. Asset will increase

E. Asset will increase

F. Asset will increase and decrease by $5,800

G. Asset will decrease

H. Asset will increase

I. Liability will decrease

J. Asset and capital will decrease by $1,200

Explanation:

Accounting equation is Asset = Liabilities + Capital

Accounting equation is affected in business transaction. The transaction in business have different effects some transaction are like hybrid which impacts the multiple accounts balances. There are some transactions which just involve asset side transaction increase and decrease on the same account this will offset the balance and no effect on equation.

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Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio'

Solnce55 [7]

Answer:

What would your portfolio's new beta be? 2,04

Explanation:

"To calculate the ending Beta by changing one stock it's necessary to find how much weigh the stock we are removing from the portfollio.

7.500 / 150.000 = 0,050 , now we have the participation of the stock in the portfolio, then we weigh the beta of the stock we want to remove by this number, 1,00 (Beta) x 0,050 (weight in the portfolio) = 0,050 (Beta), the number it's the same as the weight because the Beta is 1,00.

Now with this final number we can ponderate the new Beta in the Portfolio, so we multiply the 0,50 (weight) * 0,75 (New Beta) = 0,038 New Beta. We substitute the beta we remove for this one and we get the NEW BETA PORTFOLIO of 2,04. Please see details below:

Portfolio # Beta NEW Beta Weight Old Beta New Beta

$ 7.500 1 1,00 0,75 0,05 0,05 0,04

$ 7.500 2 2,05 2,05 0,05 0,10 0,10

$ 7.500 3 2,05 2,05 0,05 0,10 0,10

$ 7.500 4 2,05 2,05 0,05 0,10 0,10

$ 7.500 5 2,05 2,05 0,05 0,10 0,10

$ 7.500 6 2,05 2,05 0,05 0,10 0,10

$ 7.500 7 2,05 2,05 0,05 0,10 0,10

$ 7.500 8 2,05 2,05 0,05 0,10 0,10

$ 7.500 9 2,05 2,05 0,05 0,10 0,10

$ 7.500 10 2,05 2,05 0,05 0,10 0,10

$ 7.500 11 2,05 2,05 0,05 0,10 0,10

$ 7.500 12 2,05 2,05 0,05 0,10 0,10

$ 7.500 13 2,05 2,05 0,05 0,10 0,10

$ 7.500 14 2,05 2,05 0,05 0,10 0,10

$ 7.500 15 2,05 2,05 0,05 0,10 0,10

$ 7.500 16 2,05 2,05 0,05 0,10 0,10

$ 7.500 17 2,05 2,05 0,05 0,10 0,10

$ 7.500 18 2,05 2,05 0,05 0,10 0,10

$ 7.500 19 2,05 2,05 0,05 0,10 0,10

$ 7.500 20 3,10 3,10 0,05 0,15 0,15

$ 150.000 1,000 2,05 2,04

7 0

3 years ago

National Storage issued $90 million of its 10% bonds on April 1, 2018, at 99 plus accrued interest. The bonds are dated January

Ahat [919]

Answer:

The total amount of cash received is $91,350,000

Explanation:

The amount of cash proceeds realized from the bond issuance is the 99% of face value of $90 million plus the coupon interest due from January 2018(date of the bond) to April 1 ,2018(the date of bond issuance),that is three months of coupon interest payment.

The bond proceeds is computed as below:

Discounted bond price 99%*$90,000,000 =$ 89,100,000

Three months of interest 10%*$90,000,000*3/12 =$2,250,000

Total amount received from bond issue $91,350,000

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3 years ago

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3 years ago

Describe why it is important to understand how businesses impact you.

Marina CMI [18]

because they are the ones that provide me goods and services.

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2 years ago

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motikmotik

I believe the answer is: A. Fewer unwanted telemarketing calls

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3 years ago

Read 2 more answers