On July 1 the Concord Gallery paid $3300 to Fairy Realty for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on August 31, the adjusting entry to be made by the Concord is

a. debit Prepaid Rent, $1650; credit Rent Expense, $1650.

b. debit Rent Expense, $1650; credit Prepaid Rent, $1650.

c. debit Rent Expense, $2475; credit Prepaid Rent, $825.

d. debit Rent Expense, $825; credit Prepaid Rent, $2475.

Exchange rate is currently $1.85 US per 1 British pound. Interest rate is 4% in the US and 3% in the UK. A bank shorts a futures contract to buy 1,000,000 pounds for $1.9 million in one year.

A. Find the expected future spot exchange rate using the interest rate parity

B. What risk is the bank facing?

C. Write the expression for the present value of the bank’s short futures position, as a function of current spot exchange rate S

D. Find the delta of the bank’s position.

4. We have two countries, China and Nambia, with a fixed exchange rate trading at 1 yuan = 20

Nambian dollars (N$). Last year, China. bought 200 billion N$ worth of goods, services and financial

assets from Nambia, while Nambia bought 5 billion yuan from the China. (4pts):

a. What is the value of the Chinese balance of payments deficit?

b. What is the value of the Nambian balance of payments surplus?

c. What will both the Chinese and Nambian governments do in response (keeping in mind

there is a fixed exchange rate system in both countries)?

d. What effect will this have on domestic prices in China and Nambia?

Graphing:

1. Demand Model:

1. Define the law of Demand slide 4
2. llustrate an increase, decrease in quantity demanded - list the factors that are held constant in order to observe the change in quantity demanded.(ceteris paribus assumptions/ demand shifters) slide 10 and slide 11 ( graph), (slide 14 demand shifters)
3. Graph an increase, decrease in demand. Use an example of one of the non-price determinants of demand listed in 'a' and explain how it would cause demand to increase and decrease ; what is the ceteris paribus assumption when there is a change in demand slide 11

2. Supply Model:

1. Define the law of supply slide 20
2. Illustrate a decrease,increase in quantity supplied - list the factors that are held constant in order to observe the change in quantity supplied. (ceteris paribus assumptions/ supply shifters) graph sl 26-27
3. Graph a decrease in supply. Use an example of one of the non-price determinants of supply listed in 'a' and explain how it would cause supply to increase or decrease sl 28-29

4. Consumer and Producer Surplus

1. Graph a market in equilibrium and identify the area of consumer surplus and define concept; identify area of producer surplus and define concept (consumer surplus sl 33-35; producer surplus sl 36-37)
2. What is the formula for finding the area of consumer/producer surplus Formula: slide 39
3. Graph an example showing producer surplus and consumer surplus and find the area of each (use any numbers you choose)
4. If there is an increase in demand in the marketplace, what is the impact on consumer surplus as a result of the change in price at the new equilibrium? Impact from a decrease in demand? Use slide 40

1)Two parallel uniformly charged ring are placed in 4 meter distance. The charge of one of them is 2c and the other one is -3c. The radius of the rings are 1m.

find the zero point position of the Electric field.

2) Two parallel uniformly charged ring are placed in 4 meter distance. The charge of one of them is 2c and the other one is +3c.

The radius of the rings are 1m.

find the zero point position of the Electric field.

Please Answer all 4 Questions:

1) Compare the functions of the small intestine and large intestine and suggest a reason the small intestine is so much longer than the large intestine?

2) Review the location of the parotid gland and explain why a person who has mumps will probably experience pain while eating?

3) If the gallbladder is surgically removed, what functions(s) will no longer be possible? How will this surgery affect the transport bile ?

4) Why do you think it is important that the epithelial cells lining the gastric pits secrete mucus onto the surface of the stomach wall?

A small plane can fly 350 miles with tailwind in 1 3/4 hour. In the same amount of time, the same plane can travel only 210 miles with a headwind. What is the speed of the plane in still air and the speed of the wind?

Adjusted Trial Balance

1. Verbally give four (4) examples of the types of adjustment needed.   

2. Once the adjustments are made, verbally explain what do you do with the ATB   

Create financial statements (FS) from the Adjusted Trial Balance (ATB)

1. Verbally name the FS’s created from the ATB

2. Verbally explain how each FS’s are created from the ATB

3. For each of the FS’s,
   1. Verbally list the major sections
   2. Verbally name the accounts in each section

1.Suppose that you are tasked with managing a liability of $5,000 worth of 6% 4-year, annual coupon bonds when the interest rate is 4.5%. You want to minimize the interest rate risk by immunizing this position through value and duration matching. If you have 2-year and 10-year zero-coupon bonds available to create the hedge, how many dollars should you invest in each bond? Explain at least three reasons this hedge will not be perfect one year after you set it up. 


Consider tossing a coin and rolling a four-sided die (with the numbers 1 through 4 printed on the sides).

(a) Describe the sample space.

(b) Whatistheprobabilityofrollingaheadsandanevennumber?

(c) What are the odds of rolling a heads and an even number?

(d) Whatistheprobabilityofrollingaheads?

(e) What are the odds against rolling a heads?

Determine whether or not the following statements are correct or incorrect and explain why (Be thorough and clear in your explanation!):

(a) A person says “the odds of rolling a 1 on a standard six-sided die is 1/6.”

(b) Inthepastfiveseasons,crosstownfootballrivalstheQuakersandtheCometshaveplayed

each other with the Comets winning twice and the Quakers winning three times. Someone

says “the odds in favor of the Quakers winning are 3:5.”

(c) If the odds in favor of an event occurring are A to B, then the probability of the event

occurring is A/(A+B).

(d) Aneventwithprobability75%meansthattheeventisthreetimesmorelikelytooccurthan

not occur.