Suppose Juanita currently allocates 75% of her portfolio to a diversified group of stocks and 25% of her portfolio to risk-free bonds; that is, she chooses combination D. She wants to reduce the level of risk associated with her portfolio from a standard deviation of 15 to a standard deviation of 5. In order to do so, she must do which of the following? Check all that apply.a. Sell some of her stocks and use the proceeds to purchase bonds
b. Accept a lower average annual rate of return
c. Sell some of her bonds and use the proceeds to purchase stocks
d.Place the entirety of her portfolio in bonds

Answers

Answer 1
Answer:

Answer:

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Explanation:

There is a direct relationship between the risk of Juanita's portfolio and it's average annual return.

Note: Risk and return are directly proportional to each other.

Juanita currently earns a return of 4.5% that is currently she holds portfolio B and she wishes to earn a return of 9.5% that is portfolio D. Then

Sell some of her bonds and use proceeds to buy stocks

Accept more risk.

Suppose, Juanita modifies her portfolio to contain 75% diversified stock and 25% government risk free bond, that is she choose combination D. The average annual return of this type of portfolio is 9.5% but the standard deviation is 15%, the returns will typically (about 95% of the time) vary from a gain of 39.5% to a loss of - 20.5%.

95% confidence = 2 × SD = 2 × 15 = 30

Gain = 9.5 + 30 = 39.5

Loss = 9.5 - 30 = - 20.5


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Identity which of the following are project resources that can be managed: (choose all that apply)buildings the company owns
cash from the company
team member skills
problems the team encounters
the finished product

Answers

According to the project resources that can be managed are buildings the company owns, cash from the company, and team member skills.

Project resources are components required for the proper completion of a project.

They include people, equipment, money, time, and knowledge - in short, whatever you would need from project planning through project delivery.

These are divided into three categories: work, materials, and expenses.

The project manager defines resource needs to determine the resources required to complete the project's task.

Therefore, the correct option is as follows:

  • Buildings the company owns
  • Cash from the company
  • Team member skills

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Answer: 1,2,3

Explanation:

Kevin invests $800 in an account that earns 5% simple interest. Jeremy invests $600 in an account earning 6%interest compounded annually. Who will have earned more interest after 3 years? How much more?
A. Kevin will have earned $5.39 more than Jeremy after 3 years.
B. Jeremy will have earned $5.39 more than Kevin after 3 years.
C. Kevin will have earned $18.10 more than Jeremy after 3 years.
D. Jeremy will have earned $18.10 more than Kevin after 3 years.

Answers

Answer:

A

Explanation:

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2014. The chart of accounts for Kelly Consulting is shown below:
Cash 31 Kelly Pitney, Capital 12 Accounts Receivable 32 Kelly Pitney, Drawing 14 Supplies 33 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 52 Rent Expense 18 Office Equipment 19 Accumulated Depreciation 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense 55 Insurance Expense 22 Salaries Payable 23 Unearned Fees 59 Miscellaneous Expense
Required:
Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.

Answers

Answer:

The May transactions are:

May 5: Received cash from clients on account, $2,450.

May 9: Paid cash for a newspaper advertisement, $225.

May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.

May 15: Recorded services provided on account for the period May 1-15, $9,180.

May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.

May 17: Recorded cash from cash clients for fees earned during the period May 1-16, $8,360.

May 20: Purchased supplies on account, $735.

May 21: Recorded services provided on account for the period May 16-20, $4,820.

May 25: Recorded cash from cash clients for fees earned for the period May 17-23, $7,900.

May 27: Received cash from clients on account, $9,520.

May 28: Paid part-time receptionist for two weeks' salary, $750.

May 30: Paid telephone bill for May, $260.

May 31: Paid electricity bill for May, $810.

May 31: Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.

May 31: Recorded services provided on account for the remainder of May, $2,650.

May 31: Kelly withdrew $10,500 for personal use.

Solution:

Kelly Pitney

General Journal:

May 3:

Debit Cash $4,500

Credit Unearned Fees $4,500

To record advance payment for services.

May 5:

Debit Cash $2,450

Credit Accounts Receivable $2,450

To record cash receipt on account.

May 9:

Debit Miscellaneous Expense $225

Credit Cash $225

To record cash paid for a newspaper advertisement.

May 13:

Debit Accounts Payable $640

Credit Cash $640

To record part debt settlement to Office Station Co.

May 15:

Debit Accounts Receivable $9,180

Credit Fees Earned $9,180

To record services provided to clients on account, May 1 to 15.

May 16:

Debit Salaries Payable $750

Credit Cash $750

To record salaries paid.

May 17:

Debit Cash $8,360

Credit Fees Earned $8,360

To record cash receipt from clients for fees earned, May 1 to 16.

May 20:

Debit Supplies $735

Credit Accounts Payable $735

To record supplies purchased on account.

May 21:

Debit Accounts Receivable $4,820

Credit Fees Earned $4,820

To record fees earned, May 16 - 20.

May 25:

Debit Cash $7,900

Credit Fees Earned $7,900

To record cash receipt from clients for fees earned, May 17 - 23.

May 27:

Debit Cash $9,520

Credit Accounts Receivable $9,520

To record cash receipt from clients on account.

May 28:

Debit Salaries Payable $750

Credit Cash $750

To record salary paid.

May 30:

Debit Miscellaneous Expense $260

Credit Cash $260

To record payment of telephone bill for May.

May 31:

Debit Miscellaneous Expense $810

Credit Cash $810

To record electricity bill for May paid.

May 31:

Debit Cash $3,300

Credit Earned Fees $3,300

To record cash receipts from clients for May 26 - 31.

May 31:

Debit Accounts Receivable $2,650

Credit Fees Earned $2,650

To record fees earned for services on account.

May 31:

Debit Kelly Pitney, Drawing $10,500

Credit Cash $10,500

To record drawing for personal use.

Explanation:

The general journal is an important accounting tool that helps to record transactions as they occur daily.  It identifies the two accounts involved in each transaction, which should be debited or credited as the case may be.

The account that is debited is the account that receives value.  The account that is credited the account that gives value.  Sometimes, for each business transaction or event more than two accounts are involved.

It is from the general journal that transactions are posted to the general ledger.  The general ledger is a book that records transactions affecting all the accounts.  It is not necessarily in a physical book form.

Answer:

*May 16

Salaries Expense: Debit 630

Salaries Payable: Debit 120

Cash: Credit 750

Explanation:

The salaries payable is equaled to $120 as states in the balance sheet. To find the salaries expense, subtract the cash and the salaries payable.

( 750 - 120 = 630 )

Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan. 10 200 $22 18 250 23 28 100 24 A physical count on January 31, year 2, shows 250 units of product A on hand. The cost of the inventory at January 31, year 2, under the LIFO method is

a. $5,850b. $5,550c. $5,350d. $5,250

Answers

Answer:

a. $5,850

Explanation:

Under the LIFO Method, the cost of good sold equals to  

= January 28 units × cost per unit + Remaining units × cost per unit  

= 100 units × $24 + 150 units × $23

= $2,400 + $3,450

= $5,850

Since the firm has sold 250 units, so out of which 100 units sold at a price of $24 and the remaining 150 units sold at a price of $23

Final answer:

The cost of the inventory at January 31, year 2, under the LIFO method is not provided in the answer choices.

Explanation:

The LIFO (Last In First Out) method assumes that the most recently purchased inventory is sold first. In this case, the cost of the 250 units purchased on January 18, 23, and 24 will be used to calculate the cost of the inventory at January 31st.



Let's calculate the cost of the inventory:



  1. Units purchased on January 24: 100 units x $23 = $2,300
  2. Units purchased on January 23: 100 units x $28 = $2,800
  3. Units purchased on January 18: 50 units x $22 = $1,100
  4. 150 units on hand at January 1: 150 units x $21 = $3,150



The total cost of the inventory at January 31st, year 2, under the LIFO method is $9,350. Therefore, the correct option is none of the above.

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Mary signed up and paid $660 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate:

Answers

Answer: $220 of revenue, $440 of deferred revenue

Explanation:

Based on the information in the question, revenue will be recognised for the months of June and july which will be:

= 2/6 × $660

= $220

Deferred revenue will be:

= $660 - $220

= $440

Therefore, As of August 1st, Choplet’s accounting records would indicate $220 of revenue, $440 of deferred revenue.

Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $114 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.Required:
a. How much warranty expense does the company report in 2015 for this copier?
b. How much is the estimated warranty liability for this copier as of December 31, 2015?
c. How much warranty expense does the company report in 2016 for this copier?
d. How much is the estimated warranty liability for this copier as of December 31, 2016?

Answers

Answer:

Explanation:

Requirement 1

Warranty expense in 2015 = $9,000 x 6%

Warranty expense in 2015 =  $540

Note: As mention above Hitzu expects warranty cost to be 6% of dollar sales

Requirement 2

Estimate warranty liability as of Dec 2015 = $540

Requirement 3

Warranty expense in 2016 = 0

Requirement 4

Estimated warrant liability as of Dec 2016 = $540 -$114

Estimated warrant liability as of Dec 2016 = $426

Note: As the repair costs 114 on the same day of repair.

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