The general ledger of Zips Storage at January 1, 2021, includes the following account balances:Accounts Debits CreditsCash $ 25,
700 Accounts Receivable 16,500 Prepaid Insurance 14,200 Land 159,000 Accounts Payable $ 7,800 Deferred Revenue 6,900 Common Stock 154,000 Retained Earnings 46,700 Totals $ 215,400 $215,400 The following is a summary of the transactions for the year:1. January 9 Provide storage services for cash, $145,100, and on account, $57,700.2. February 12 Collect on accounts receivable, $52,600.3. April 25 Receive cash in advance from customers, $14,000.4. May 6 Purchase supplies on account, $11,400.5. July 15 Pay property taxes, $9,600.6. September 10 Pay on accounts payable, $12,500.7. October 31 Pay salaries, $134,600.8. November 20 Issue shares of common stock in exchange for $38,000 cash.9. December 30 Pay $3,900 cash dividends to stockholders.1. Prepare a post-closing trial balance. (Hint: The balance of Retained Earnings will be the amount shown in the balance sheet.)2. Prepare an unadjusted trial balance3. Prepare an adjusted trial balance4-a. Prepare the income statement for the year ended December 31, 2021.4-b. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)5. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)6. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.
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Answer:
hello your question is incomplete below is the complete question and the missing table
Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Here is the recent price history of the two stocks: on the evidence of these six months how large would your short position in Frankfurter sausage needed to be to hedge you as far as possible against movements in the price of swiss Roll
answer : $42003667
Explanation:
$100 million in stocks
According to the data provided in the table attached below, to short the Frankfurt in order to hedge investment in Rolls is calculated below
we have to calculate the total return on both Roll corporation and Frankfurter sausage
for f-sausage
∑ (1 + monthly returns ) / 100
= ( 1 - 0.1 + 1 - 0.1 .... + 1 + 0.1 ) = -0.0297 = -2.97%
for Roll corporation
∑ (1 + monthly returns ) / 100
= ( 1 - 0.1 + 1 - 0.05 .... + 1 + 0.1 ) = -0.012475 = - 1.24%
next we will calculate the total loss inquired when investing in Roll corporation
Total loss = percentage loss * total investment
= 0.012475 * $100 million = - $ 1247500
we will have to offset the loss by shorting investments in F sausage
hence : $1247500 = investment in sausage * total return
1247500 = investment in sausage * 0.0297 ( The total return of F sausage is positive because it was a short position )
hence short investment in F sausage to offset loss incurred in ROLLS INVESTMENT
= 1247500 / 0.0297 = $42003667
