1. A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 and recorded them as increase to the supplies asset. At the end of the year the company determined that only $300 of supplies are still on hand. What is the adjusting journal entry to be made at the end of the period?
Debit Supplies Expense and credit Supplies for $2,000
Debit Supplies and credit Supplies Expense for $300
Debit Supplies Expense and credit Supplies for $1,200
Debit Supplies and credit Supplies Expense for $1,000
2. You are given the following probability distribution for a stock:
Pr. Outcome
.4 -4%
.6 12%
A. Compute the expected return
B. Compute the standard deviation
C. Presuming the stock returns are normally distributed, what do these results indicate?