You are given the following data
Year HPR of Stock A HPR of Stock B HPR of Stock C
2017 12% 16% 12%
2018 14% 14% 14%
2019 16% 12% 16%
(1) Calculate expected rate of return for each stock
(2) Calculate standard deviation for each stock
(3) Calculate coefficient of variation for each stock. If you will choose only one stock for investment, which stock will you choose? Why?
(4) How much is correlation coefficient between A and B? between A and C?
(5) Calculate expected rate of return and standard deviation for the portfolio A + B. Assume you invest equal proportion (50%) in each stock
(6) Calculate expected rate of return and standard deviation for the portfolio A+C. Assume you invest equal proportion (50%) in each stock
(7) Which portfolio do you recommend? Why?
In: Finance
Equipment purchased at the beginning of the fiscal year for $840,000 is expected to have a useful life of 10 years, or 400,000 operating hours, and a residual value of $40,000. Compute the depreciation for the first and second years of use by each of the following methods:
a) straight-line
b) units-of-production (10,000 hours first year; 15,000 hours second year)
c) declining-balance at twice the straight-line rate
(Round the answer to the nearest dollar.)
In: Accounting
A storage tank acquired at the beginning of the fiscal year at a cost of $104,400 has an estimated residual value of $6,400 and an estimated useful life of four years.
a. Determine the amount of annual depreciation
by the straight-line method.
$fill in the blank 1
b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.
| Depreciation | |
| Year 1 | $fill in the blank 2 |
| Year 2 | $fill in the blank 3 |
In: Accounting
At the beginning of the year, office supplies of $ 900 were on hand. During the year, Tempo Air Conditioning Service paid $ 1 comma 000 for more office supplies. At the end of the year, Tempo has $ 600 of office supplies on hand.
Read the requirements
LOADING...
.Requirement 1. Record the adjusting entry assuming that
TempoTempo
records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies T-account.Begin by recording the adjusting entry assuming that
TempoTempo
records office supplies by initially debiting an asset account. (Record debits first, then credits. Select the explanation on the last line of the journal entry.)
|
Date |
Accounts and Explanation |
Debit |
Credit |
||
|
Supplies Expense |
1500 |
||||
|
Office Supplies |
|||||
Now post the adjusting entry to the Office Supplies and Supplies Expense T-accounts.
Enter the beginning balances on the first line of each account. Use a
"Jan.Jan.
1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies T-account, then post the adjusting entry. Use a "Bal." reference to show the ending balance of each account. (For accounts with a $0 unadjusted balance, make sure to enter "0" on the normal side of the accounts.)
|
Office Supplies |
Supplies Expense |
|||||||||||
Requirement 2. Record the adjusting entry assuming that
TempoTempo
records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account, and the purchase of office supplies in the Supplies Expense T-account.Begin by recording the adjusting entry assuming that
TempoTempo
records office supplies by initially debiting an expense account. (Record debits first, then credits. Select the explanation on the last line of the journal entry.)
|
Date |
Accounts and Explanation |
Debit |
Credit |
||
Now post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account, and the purchase of office supplies in the Supplies Expense T-account.
Enter the beginning balances on the first line of each account. Use a
"Jan.Jan.
1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies T-account, then post the adjusting entry. Use a "Bal." reference to show the ending balance of each account. (For accounts with a $0 unadjusted balance, make sure to enter "0" on the normal side of the accounts.)
|
Office Supplies |
Supplies Expense |
|||||||||||
Requirement 3. Compare the ending balances of the T-accounts under both approaches. Are they the same?
The ending balances in the Office Supplies account and the Supplies Expense account are
▼
different,
the same,
▼
depending on
regardless of
which of the two approaches is used.
Choose from any list or enter any number in the input fields and then continue to the next question.
In: Accounting
If a company writes off a Bad Debt Account at the end of a year and subsequently recovers the written off amount the following year, what should it do to record this transaction – explain?
In: Accounting
A company has the option to purchase a building for $500,000 at the begining of year one. This building is larger than needed; however, the excess space can be sublet for 12 years at a net annual rental of $8,000. Rental payments will be received at the end of each year and the risk associated with this investment is 10%. Calculate the present value of the investment in the building.
In: Accounting
|
You are engaged in the audit of the financial statements of Holman Corporation for the year ended December 31, 20X6. The accompanying analyses of the Property, Plant, and Equipment and related accumulated depreciation accounts have been prepared by the chief accountant of the client. You have traced the beginning balances to your prior year’s audit working papers. |
| HOLMAN CORPORATION | ||||||||
| Analysis of Property, Plant, and Equipment | ||||||||
| and Related Accumulated Depreciation Accounts | ||||||||
| Year Ended December 31, 20X6 | ||||||||
| Final |
Assets |
Per Ledger | ||||||
| Description | 12/31/X5 | Additions | Retirements | 12/31/X6 | ||||
| Land | $ | 443,500 | $ | 6,400 | $ | 449,900 | ||
| Buildings | 134,000 | 24,500 | 158,500 | |||||
| Machinery and equipment | 399,000 | 43,200 | $ | 31,500 | 410,700 | |||
| $ | 976,500 | $ | 74,100 | $ | 31,500 | $ | 1,019,100 | |
| Final |
Accumulated Depreciation |
Per Ledger | ||||||
| Description | 12/31/X5 | Additions* | Retirements | 12/31/X6 | ||||
| Buildings | $ | 67,000 | $ | 5,850 | $ | 72,850 | ||
| Machinery and equipment | 179,550 | 41,935 | 221,485 | |||||
| $ | 246,550 | $ | 47,785 | $ | 294,335 | |||
*Depreciation expense for the year.
|
All plant assets are depreciated on the straight-line basis (no residual value taken into consideration) based on the following estimated service lives: building, 25 years; and all other items, 10 years. The company’s policy is to take one half-year’s depreciation on all asset additions and disposals during the year. |
| Your audit revealed the following information: |
| 1. |
On April 1, the company entered into a 10-year lease contract for a die casting machine, with annual rentals of $6,400 payable in advance every April 1. The lease is cancelable by either party (60 days' written notice is required), and there is no option to renew the lease or buy the equipment at the end of the lease. The estimated service life of the machine is 10 years with no residual value. The company recorded the die casting machine in the Machinery and Equipment account at $43,200, the present value at the date of the lease, and $2,160 applicable to the machine has been included in depreciation expense for the year. |
| 2. |
The company completed the construction of a wing on the plant building on June 30. The service life of the building was not extended by this addition. The lowest construction bid received was $23,100, the amount recorded in the Buildings account. Company personnel constructed the addition at a cost of $20,200 (materials, $8,900; labor, $6,900; and overhead, $4,400). |
| 3. |
On August 18, $6,400 was paid for paving and fencing a portion of land owned by the company and used as a parking lot for employees. The expenditure was charged to the Land account. |
| 4. |
The amount shown in the machinery and equipment asset retirement column represents cash received on September 5 upon disposal of a machine purchased in July 20X2 for $58,000. The chief accountant recorded depreciation expense of $4,300 on this machine in 20X6. |
| 5. |
Harbor City donated land and a building appraised at $240,000 and $540,000, respectively, to Holman Corporation for a plant. On September 1, the company began operating the plant. Since no costs were involved, the chief accountant made no entry for the above transaction. |
| Required: | |
|
Prepare the adjusting journal entries that you would propose at December 31, 20X6, to adjust the accounts for the above transactions. Disregard income tax implications. The accounts have not been closed. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round any division. Round your answers to the nearest dollar amount.) |
|
Journal entry worksheet
Record the entry to correct the April 1, 20X6 entry for the lease of a die casting machine under a ten-year, cancelable lease having no renewal or purchase option.
Note: Enter debits before credits.
|
In: Accounting
You are a reporter working in a year in the past and writing an article about a new vaccine. Your article will take place in the year the vaccine was invented (or approved for use on the general public) and should be written as if it were a current event. It is your job to deliver information about the new vaccine and create public awareness. Choose one vaccine and list the date and person(s) or company responsible for creating it. Describe the disease the vaccine was developed to prevent including the microorganism that causes it. Provide a short background about the severity and effects of the disease at the “current” time period. Describe the way the vaccine was invented or discovered. Relay to your readers the exact way the vaccine works to create a protective result against the microorganism. Communicate the risks, benefits, the method of vaccination, and contraindications of the vaccine. Your readers trust you to give them objective information. At the same time, the vaccine is likely to benefit the general public and your readers may need some gentle persuasion to follow through with immunization.
In: Nursing
In: Statistics and Probability
The Harris Company is the lessee on a four-year lease with the
following payments at the end of each year:
| Year 1: | $ | 12,500 |
| Year 2: | $ | 17,500 |
| Year 3: | $ | 22,500 |
| Year 4: | $ | 27,500 |
An appropriate discount rate is 7 percentage, yielding a present
value of $66,314.
a-1. If the lease is an operating lease, what will
be the initial value of the right-of-use asset?
a-2. If the lease is an operating lease, what will
be the initial value of the lease liability?
a-3. If the lease is an operating lease, what will
be the lease expense shown on the income statement at the end of
year 1?
a-4. If the lease is an operating lease, what will
be the interest expense shown on the income statement at the end of
year 1? (Leave no cells blank – be certain to enter “0”
wherever required.)
a-5. If the lease is an operating lease, what will
be the amortization expense shown on the income statement at the
end of year 1? (Leave no cells blank – be certain to enter
“0” wherever required.)
b-1. If the lease is a finance lease, what will be
the initial value of the right-of-use asset?
b-2. If the lease is a finance lease, what will be
the initial value of the lease liability?
b-3. If the lease is a finance lease, what will be
the lease expense shown on the income statement at the end of year
1? (Leave no cells blank – be certain to enter “0” wherever
required.)
b-4. If the lease is a finance lease, what will be
the interest expense shown on the income statement at the end of
year 1? (Round your answer to the nearest dollar
amount.)
b-5. If the lease is a finance lease, what will be
the amortization expense shown on the income statement at the end
of year 1? (Round your answer to the nearest dollar
amount.)
In: Accounting