JY investment Ltd holds a well-diversified portfolio of shares that has a market value of $1.5 million on 30 June 2019. JY is concerned about possible downturns in the share market and on 1 March 2020 decides to take out a sell position in eleven “September 2020 SPI 200 Futures” units when the SPI 200 is 5500. The SPI 200 Futures contract unit value is the value of SPI 200 multiplied by $25. To enter the contract, JY pays an initial cash deposit (margin) of $150,000 to a broker. On 30 June 2020, the reporting date of JY investment Ltd, the unit price of the September SPI futures contracts has fallen to 5300 and the market value of the firm’s portfolio of shares is $1 435 000. Assume broker allows a $50,000 drop before making a margin call to allow for minor fluctuations in the market. The shares are sold on 31 August 2020 when the market value of the shares is $1 290 000 and the September SPI 200 futures contract closed out at 5250 on 31 August 2020. Assume the futures contracts qualify as a hedge, the shares are marked to market.

REQUIRED: Prepare journal entries to account for the above events from 1 March 2020 to 31 August 2020. Show all calculations and round them to the nearest dollar amount. No narration is required.

JY investment Ltd holds a well-diversified portfolio of shares that has a market value of

$1.5 million on 30 June 2019. JY is concerned about possible downturns in the share market and on 1 March 2020 decides to take out a sell position in eleven “September 2020 SPI 200 Futures” units when the SPI 200 is 5500. The SPI 200 Futures contract unit value is the value of SPI 200 multiplied by $25. To enter the contract, JY pays an initial cash deposit (margin) of $150,000 to a broker.

On 30 June 2020, the reporting date of JY investment Ltd, the unit price of the September SPI futures contracts has fallen to 5300 and the market value of the firm’s portfolio of shares is $1 435 000. Assume broker allows a $50,000 drop before making a margin call to allow for minor fluctuations in the market.

The shares are sold on 31 August 2020 when the market value of the shares is $1 290 000 and the September SPI 200 futures contract closed out at 5250 on 31 August 2020. Assume the futures contracts qualify as a hedge, the shares are marked to market.

QUESTION

Prepare journal entries to account for the above events from 1 March 2020 to 31 August 2020. Show all calculations and round them to the nearest dollar amount. No narration is required.

Prepare the projected profit & Loss statement for the year 2021, 2022, and 2023. Please calculate the payback period for the frim.

Our AAA sightseeing tour plan will start with total capital of 90,000 USD on 2021 January.

Projected Costs are as follows

Vehicle costs  34000 USD

Software & Apps cost 4000 USD

Location Rental for 250 USD per month for 3 years contract after first-year rental cost, it will increase 5% for the next coming 2 years.

Vehicle Maintenance fees will be 200 USD per month for 3 years contract with outsource company,

after 1st startup year, the cost will increase by 5% for the next coming 2 years.

Total staff salary will be USD 2400 per month for the first year and 5% will increase for the next coming years

Overall general expenses are USD 15000 for the first year and the second and third year will be increased by 5%.

Taxes will be  5% charged.

1. FOX News surveyed voters, and according to their survey results, 38% of the voters in California voted for Mitt Romney, the Republican candidate for President in 2012 (source: “Presidential election results,” http://nbcnews.com, updated Feb. 9, 2016). A small startup company in San Jose, California, has ten employees. (Hint: Find out the distribution type)

a. How many of the employees would you expect to have voted for Romney? (5 points)

b. All of the employees indicated that they voted for Obama. Determine the probability of this assuming they are representative of all California voters. (5 points)

c. Eight of the employees voted for Obama. Determine the probability that at least 8 of the employees would vote for Obama if they are representative of all California voters. (2.5 points)

d. Based on your calculations in parts b and c, do the employees reflect the California trend? Support your answer with statistical calculations and reasoning. (2.5 points)

Please answer the following Question in 300 word count Please answer in your own Count. if citing source please add reference at the end of question.

You are the chief financial officer (CFO) at a community hospital. One of the comments that has come back from patient surveys is the need for a commercial 24-hour pharmacy within the hospital. In this way, patients or their families will be able to fill prescriptions and begin taking ordered medication right away instead of waiting until the following day. The chief executive officer (CEO) wants you to create a proposal for the first 3 months of operation utilizing time value of money tools for the development of this new revenue-generating department. The following points must be covered in your proposal:

• Include and discuss the need for working capital to include 2 months of startup drug inventory, vendor financing arrangements, personnel costs including salaries and benefits, renovations, disposable supplies, and cost of equipment

You worked in a small local company as an assistant manager for several years. Now you quit the job and start your own business. You persuade your cousin to become a co-owner and invest $76,000 in the startup business. You invest $24,000 equity capital in the business. The business is organized as a limited liability company (LLC). You are the managing member, whereas your cousin is only a passive investor who does not manage the day-to-day operations. You also persuade your uncle to lend $20,000 to the business with 10% annual interest rate and 5-year term. To conserve cash, you agree not to take any salary in the first three years. Suppose you and your cousin are both in the 25% marginal personal income tax bracket.

Which of the followings is most likely to be a reasonable ownership structure of the new business? ____
a. You own 50%, your cousin owns 50%, and your uncle is not a co-owner.
b. You own 24%, your cousin owns 76%, and your uncle is not a co-owner.

c. you own 20%, your cousin owns 58.3%, and your uncle owns 16.7%.

d. You own 1/3, your cousin owns 1/3, and your uncle owns 1/3.

The after-tax interest cost (in annual percentage) of your uncle’s loan to your startup business is ____.
a. 2.5%
b. 7.5%

c. 10%

d. 12.5%

Suppose your cousin requires 40% ownership in exchange for the $76,000 investment. You agree this term. Then, the market value of your business’ equity is _____, and the book value of the equity is _____.

a. 190k; 100k

b. 190k; 120k

c. 100k; 100k

d. 120k; 120k

Which one of the following statements about you and your cousin is correct? _____.

a. Both you and your cousin have unlimited liability for the business.

b. You have unlimited liability but your cousin has limited liability for the business.

c. Your cousin has unlimited liability but you have limited liability for the business.

d. Both you and your cousin have limited liability for the business.

After the startup is launched, the following three years’ operating income is as follows:

Year 1: ‒$10,000; Year 2: +$30,000: Year 3: +$80,000
In these three years, your business distributed $0 (in year 1), $10,000 (in year 2) and $24,000 (in year 3) cash dividends to owners. The book value of your business’ equity at the end of the third year should be _____.
a. $100,000
b. $133,500
c. $160,000
d. $166,00

37. Suppose your cousin owns 40% of the business as a result of his initial $76,000 investment. At the end of the third year, an outside investor offers $200,000 for his ownership. Although your cousin likes this deal, you do not want to have this outside investor in your business. Which of the following statements is correct? ______

    1. Your cousin can freely sell his ownership to other people without your agreement, just as everybody can freely buy and sell the shares of public companies without other people’s permission.

    2. Unlike investing in public companies, your cousin cannot freely sell his ownership to other people without your agreement.

Riverbed Company is presently testing a number of new agricultural seed planters that it has recently developed. To stimulate interest, it has decided to grant to five of its largest customers the unconditional right of return to these products if not fully satisfied. The right of return extends for 4 months. Riverbed estimates returns of 15%. Riverbed sells these planters on account for $1,550,000 (cost $697,500) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020.

(a)

Prepare the journal entry for Riverbed at January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(b)

Assume that one customer returns planters on March 1, 2020, due to unsatisfactory performance. Prepare the journal entry to record this transaction, assuming this customer purchased $97,000 of planters from Riverbed and also record the entry required to pay the full amount due by March 15, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(c)

Assume Riverbed prepares financial statements quarterly. Prepare the necessary entries (if any) to adjust Riverbed’s financial results for the above transactions on March 31, 2020, assuming remaining expected returns of $135,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Sarasota Windows manufactures and sells custom storm windows for three-season porches. Sarasota also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sarasota enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,440 and chooses Sarasota to do the installation. Sarasota charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Sarasota $2,040 (which equals the standalone selling price of the windows, which have a cost of $1,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Sarasota completes installation on October 15, 2020, and the customer pays the balance due.

Sarasota estimates the standalone selling price of the installation based on an estimated cost of $420 plus a margin of 30% on cost.

Prepare the journal entries for Sarasota in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)

eTextbook and Media

List of Accounts

Given uncertainty of finding skilled labor, Sarasota is unable to develop a reliable estimate for the standalone selling price of the installation.

Prepare the journal entries for Sarasota in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

show work and explain

Sarasota Windows manufactures and sells custom storm windows for three-season porches. Sarasota also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sarasota enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,440 and chooses Sarasota to do the installation. Sarasota charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Sarasota $2,040 (which equals the standalone selling price of the windows, which have a cost of $1,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Sarasota completes installation on October 15, 2020, and the customer pays the balance due.

Sarasota estimates the standalone selling price of the installation based on an estimated cost of $420 plus a margin of 30% on cost.

Prepare the journal entries for Sarasota in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)

eTextbook and Media

List of Accounts

Given uncertainty of finding skilled labor, Sarasota is unable to develop a reliable estimate for the standalone selling price of the installation.

Prepare the journal entries for Sarasota in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

show work and explain

Preparing Adjusting Journal Entries

Pacific Company adjusts and closes its books each December 31. It is now December 31, 2020, and the following information is available for preparing accounting adjustments.

1. The Accounts Receivable balance at December 31 is $6,400. The company estimates that 5% of receivables will not be collected. (Assume a zero beginning balance in Allowance for Doubtful Accounts.)
2. Unpaid and unrecorded salaries incurred at December 31 are $960.
3. The company paid a two-year insurance premium in advance on April 1, 2020, for $1,920 cash, which was debited to Prepaid Insurance.
4. Equipment which cost $16,000, is to be depreciated for the full year. The estimated useful life is 10 years, and the equipment will be depreciated evenly over its useful life.
5. Pacific Company leased a warehouse on June 1, 2020, for one year only. The company was required to pay the full amount of rent one year in advance on June 1, for $1,920 cash, which was debited to Lease Expense.
6. The company received from a customer a 9% note with a face amount of $2,400. The note was dated September 1, 2020; the principal plus the interest is payable one year later. Note Receivable was debited, and Sales was credited on September 1, 2020.
7. On December 30, 2020, the property tax bill was received in the amount of $1,000. This amount applied only to 2020 and had not been previously recorded or paid. Taxes are due, and will be paid, on January 15, 2021.
8. On April 1, 2020, the company signed a $12,000, 10% note payable. On that date, Cash was debited and Note Payable credited for $12,000. The note is payable on March 31, 2021, for the face amount plus interest for one year.
9. The company purchased a patent on January 1, 2020, at a cost of $2,380. On that date, the Patent was debited and Cash credited for $2,380. The patent has an estimated useful life of 17 years and no residual value. Hint: Record the estimated consumption of the patent as amortization expense.

Prepare the adjusting entry required on December 31, 2020, for each situation 1 through 9. Assume that no adjusting journal entries were recorded during the year prior to year-end.