Which of the following is NOT a type of mistake in contract law?

On October 29, 2017, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The ra

sveta [45]

Answer:

a. Nov 11, 2017

Dr Cash $4,900

Cr sales $4,900

Nov 30, 2017

Dr Warranty expense $294

Cr Estimated warranty Liabilities $294

Dec 9, 2017

Dr Estimated warranty Liabilities $196

Cr Cash $196

Dec 16, 2017

Dr Cash $14,700

Cr sales $14,700

Dec 29, 2017

Dr Estimated warranty Liabilities $392

Cr Cash $392

Dec 31, 2017

Dr Warranty expense $882

Cr Estimated warranty Liabilities $882

b. Jan 5,2018

Dr Cash $9,800

Cr Sales$9,800

Jan 17,2018

Dr Estimated warranty Liabilities $462

Cr Cash $462

Dec 31,2018

Dr Warranty expense $588

Cr Cash $588

Explanation:

a. Preparation of the journal entries to record above transactions and adjustments for 2017

Nov 11, 2017

Dr Cash $4,900

Cr sales $4,900

(Being to record razors sold for cash)

Nov 30, 2017

Dr Warranty expense $294

Cr Estimated warranty Liabilities $294

($4900*6%)

(Being to record warranty expense)

Dec 9, 2017

Dr Estimated warranty Liabilities $196

Cr Cash $196

(14 razors*14)

(Being to replaced 14 razors)

Dec 16, 2017

Dr Cash $14,700

Cr sales $14,700

(Being razors sold for cash)

Dec 29, 2017

Dr Estimated warranty Liabilities $392

Cr Cash $392

(28 razors*14)

(Being to replaced 28 razors)

Dec 31, 2017

Dr Warranty expense $882

Cr Estimated warranty Liabilities $882

($14,700*6%)

(Being to record warranty expense)

b. Preparation of the journal entries to record above transactions and adjustments for 2018

Jan 5,2018

Dr Cash $9,800

Cr Sales$9,800

(Being to record razors sold for cash)

Jan 17,2018

Dr Estimated warranty Liabilities $462

Cr Cash $462

(33 razors*14)

(Being to replaced 33 razors)

Dec 31,2018

Dr Warranty expense $588

Cr Cash

(6%*$9,800) $588

(Being to record warranty expense)

5 0

2 years ago

Judith puts $5000 into an investment account with interest compounded explain continuously. which approximate annual rate is nee

Ludmilka [50]

The interest per year for $5,000 to become $9,110 after 30 years is 2.02% compounded continuously.

4 0

2 years ago

Type the correct answer in the box. Spell all words correctly. Henry works at a newspaper agency. Here, he works with the editor

stepladder [879]

Answer:

Henry works at a newspaper agency. Here, he works with the editor to put fresh stories in the newspaper every day. This is necessary because, as each day passes, that day’s newspaper becomes old and redundant. Which quality of the newspaper is depicted here? The quality of the newspaper is highly depicted here.

Explanation:

There was nothing incorrect but i felt that being would be better if it was replaced with is

8 0

2 years ago

Your uncle holds just one stock, East Coast Bank (ECB). You agree that this stock is relatively safe, but you want to demonstrat

g100num [7]

Complete question:

Assume that your uncle holds just one stock, East Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for West Coast Bank (WCB). Both banks have had less variability than most other stocks over the past 5 years.

Year ECB WCB

2004 40.00% 40.00%

2005 -10.00% 15.00%

2006 35.00% -5.00%

2007 -5.00% -10.00%

2008 15.00% 35.00%

a. What is the expected return and risk of each stock?

b. Measured by the standard deviation of returns, by how much would your uncle's risk have been reduced if he had held a portfolio consisting of 60% in ECB and the remainder in WCB? In other words, what is the difference between portfolio's standard deviation and weighted average of components' standard deviations? (Hint: check the example on page 11-12 on my note).

Solution:

The estimated return of the stock is the average profit.

So the average of ECB is (40-10+35-5+15)/5

= $\frac{75 percent}{5}$

= 15% expected return

WCB expected return = 40+15-5-10+35

= $\frac{75 percent}{5}$

= 15%

They've had the same planned return.

This is generally defined in the Greek letter Mu, (U) A weighted average may also be used to calculate portfolio volatility.

Standard deviation of ECB is $\sqrt{{ sum [(x-U)^2]/5}}$

so for ECB:

$(40-15)^2$ = $25^2$ =6.25%

$(-10-15)^2$ = $-35^2$ = 0.1225

$(35-15)^2$ = $20^2$ = 0.04

$(-5-15)^2$ = $-20^2$ = 0.04

$(15-15)^2$ =0

now 0.0625+0.1225+0.04+0.04+0=0.265

stdev= $\sqrt{(0.265/5)}$ = 0.23

So WCB is the same except in a different order to make things quick I'm only going to add the median again WCB=0.23

Then the 60/40 portfolio will be the "weighted average" of the returns.

portfolio returns

2004: (60%*40%)+(40%*40%) = 40%

2005: (60%*-10%)+(40%*15%) = 0%

2006: (60%*35%)+(40%*-5%) = 19%

2007: (60%*-5%)+(40%*-10%) = -7%

2008:(60%*15%)+(40%*35%) = 23%

we have an average return of (40+19-7+23)/5 = 75/5 =15%

The estimated return of all combined stocks is a better way to do so.

we knew they both had expected returns of 15% so we can say

(60%*15%)+(40%*15%)=15% so the portfolio has an expected return of 15%

Now we do the standard deviation for the whole portfolio and get

$(40-15)^2$ = $25^2$ =6.25%

$(0-15)^2$ = - $25^2$ =6.25%

$(19-15)^2$ = $4^2$ = 0.16%

$(-7-15)^2$ = $-22^2$ = -4.84%

$(23-15)^2$ = $8^2$ = 0.64%

now add them up and get 9.78%

$\sqrt{(9.78%/5)}$ = 13.98%

Therefore, the normal portfolio variance is 13.98 per cent and the predicted portfolio return is 15 per cent.

Every stock has a standard deviation of 23 per cent and an average return of 15 per cent, meaning that the fund has the same estimated return but with less standard deviation. This ensures that the same gain is less costly. It's stronger than any of these products.

5 0

2 years ago

Assume India can produce either 15 bottles of milk or 50 cartons of eggs using all of its available resources, and Indonesia can

diamong [38]

Answer:

50 cartons of eggs

Explanation:

The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.

Bottles of milk cartons of eggs

India 15 50

Indonesia 25 35

In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.

In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.

According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.

5 0

2 years ago