The following are the classes of transactions and the titles of the journals used for Phillips Equipment Rental Co

Auditing P 6-23 The following are the classes of transactions and the titles of the journals used for Phillips Equipment Rental Co.

Classes of Transactions:
Purchases Returns
Rental revenue
Charge-off of uncollectible accounts
Acquisition of goods and services (except payroll)
Rental allowances
Adjusting entries (for payroll)
Payroll service and payments
Cash disbursements (except payroll)
Cash receipts

Title of Journals:
Cash receipts journal
Cash disbursements journal
Acquisitions journal
Revenue journal
Payroll journal
Adjustments journal

Required:
a. Identify one financial statement balance that is likely to be affected by each of the nine classes of transactions.
b. For each class of transactions, identify the journal that is likely to be used to record the transactions.
c. Identify the transaction cycle that is likely to be affected by each of the nine classes of transactions.
d. Explain how total rental revenue, as cited on the financial statements of Phillips Equipment Rental Co., is accumulated in journals and is summarized on the financial statements. Assume that there are several adjusting entries for rental revenue at the balance sheet date.


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Your portfolio has three asset classes

Your portfolio has three asset classes. U.S. government T-bills account for 45% of the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills, 12.3% for the large-company stocks, and 17.4% for the small-company stocks, what is the expected return of the portfolio?

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