Answer:
a. GDP in this economy is $135.
b. Producer Value Added
(Dollars)
Farmer 70
Miller 50
Baker 15
Total $135
c. The total value added for the three producers in this economy does not equal the economy’s GDP.
b. False
Explanation:
Ordinarily, Gross Domestic Product (GDP) is the economic measure of the total value of all the finished goods and services produced within a country's borders in a specific time period, usually a year. Broadly, it comprises the totality of private consumption, fixed investment, change in inventories, government consumption, and net exports. On the other hand, value added can be defined as the economic profit made from a business activity.
On January 1, 2009 the accounts receivable and the allowance for doubtful accounts carried balances of $20,000 (debit) and $500 (credit), respectively. During the year, the company reported revenues of $100,000; 30% of which were cash sales. There were $550 of receivables written-off as uncollectible in 2009. Cash collections of receivables amounted to $74,550. If the company estimates bad debts expense to be 1% of credit sales, determine the net realizable value of receivables appearing on the 2009 balance sheet:
Answer:
The net realizable value of receivables appearing on the 2009 balance sheet is $14,250
Explanation:
First, we need to calculate the balance of account receivables
Ending balance = Beginning Balance + Credit sales - Cash collected - Bad debt written off
Where
Beginning Balance = $20,000
Credit sales = $100,000 x ( 100% - 30% ) = $70,000
Cash collected = $74,550
Bad Debt written off = $550
Placing values in the formula
Ending balance = $20,000 + $70,000 - $74,550 - $550 = $14,900
Now, we need to calculate the balance of allowance for doubtful accounts as follow
Ending Balance = Beginning balance + Bad debt Expense - Bad debt written off
Where
Beginning balance = 500
Bad debt expense = $70,000 x 1% = $700
Bad debt written off = $550
placing values in the formula
Ending Balance = $500 + $700 - $550 = $650
Now calculate the balance of realizable value of account receivables as follow
Net realizable value of receivables = Ending balance of receivables - Ending balance of allowance for doubtful accounts = $14,900 - $650 = $14,250
The difference between accounting exposure and translation exposure is that:______
a. translation is about going from one language to another, accounting is just about the numbers.
b. accounting exposure and translation exposure are the same thing.
c. hedging one always involves increasing the other.
d. hedging one might involve increasing the other.
Answer:
B.)accounting exposure and translation exposure are the same thing.
Explanation:
Accounting Exposure can also be regarded as also translation exposure, it take care of all accounting-derived changes that could arise in owner's equity. This Translation exposure do take place when a firm is a dominant of part of her equity or liabilities in a foreign currency.
Browning, Inc., collects cash from customers in advance and from other customers after the sale.
Read the requirement
a. Journalize Browning earning service revenue of $15,000 on account and then collecting $10,000 on account. (Record debits first, then credits. Exclude explanations from any jounal entries.)
Start by recording Browning earning $15,000 of service revenue on account.
Journl Entry
Date Accounts Debit Credit
2018
Journalize the followibg transactions for Browning:
a. Accrued revenue. Some customers pay Browning after Browning has performed the service for the customer. During 2018, Browning performed services for $15,000 on account and later received cash of $10,000 on account from these customers.
b. Unearned revenue. A few customers pay Browning in advance, and Browning later performs the service for the customer. During 2018, Browning collected $2,000 cash in advance and later earned $1,500 of this amount.
Answer and Explanation:
The journal entries are shown below:
a)
i) Accounts receivable $15,000
To Service revenue $15,000
(Being the service revenue on account is recorded)
ii) Cash $10,000
To Accounts receivable $10,000
(Being cash received is recorded)
b)
i) Cash $2,000
To Unearned Service revenue $2,000
(being cash received is recorded)
ii) Unearned Service revenue $1,500
To Service revenue $1,500
(being unearned service revenue is recorded)
Financial Statement Ratios
Financial statement ratios play an important role in understanding and interpreting financial data. The solvency, liquidity, savings, and debt service ratios are important tools that will provide you with information, helping you chart and improve your personal financial planning. Complete the equations for each of the following financial statement ratios.
Soleency Ratio
Liquidity Ratio
Sarings Ratio
Debe Service Ratio
Brock Newman has prepared his annual finencial statements in order to analyze the data. The data provided are items from Brock's balance sheet and ncome and expense statement. Use the data provided to calcuilate Brock's financial statement ratos. For example, 15006 would be entered as "15.0%".
Brock's Financial Data
Total liquid assets $414
Total assets $8,275
Total current debts $2,069
Total net worth $2,896
Total cash surplus $163.6667
Income after taxes $1,342
Total monthly loan payments $295
Monthly gross (before-tax) income $1,636.6667
Answer:
Solvency Ratio = Total Net Worth / Total Assets
Solvency Ratio = 2,896/8,275
Solvency Ratio = 0.3499698
Solvency Ratio = 35.00%
Liquidity Ratio = Total Liquid Assets / Total Current Debts
Liquidity Ratio = 414/2,069
Liquidity Ratio = 0.20009667
Liquidity Ratio = 20.01%
Savings Ratio = Cash Surplus / Income After Taxes
Savings Ratio = 163.6667/1,342
Savings Ratio = 0.121957303
Savings Ratio = 12.20%
Debt Service Ratio = Total Monthly Payments / Monthly Gross Income
Debt Service Ratio = 295/1636.6667
Debt Service Ratio = 0.180244396
Debt Service Ratio = 18.02%
What are three important characteristics for an entrepreneur to have?
(Check all of the boxes that apply)
Popular
Hardworking
Optimistic
Healthy
Witty
Disciplined
Answer:
HardworkingOptimisticDisciplinedExplanation:
An entrepreneur starts and operates a new business. An entrepreneur develops a business idea in their mind. They then source for all that is required to transform the idea into a successful business.
Entrepreneurs take risks by investing their resources, time, and energy in the business idea. They undertake the investment because they are convinced it will work. It takes hard work and sacrifices for the new business to be successful. An entrepreneur must focus on their business for it to grow.
Answer:
2 3 6
Explanation:
On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 75,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows:
December 20, 2017 $1.17
December 31, 2017 1.14
January 10, 2018 1.10
Required:
a. How does the fluctuation in exchange rates affect Butanta's 2017 income statement?
b. How does the fluctuation in exchange rates affect Butanta's 2018 income statement?
Answer:
A. Decrease in asset $2,250
B. Decrease in asset $3,000
Explanation:
A. Calculation for How does the fluctuation in exchange rates affect Butanta's 2017 income statement
Transaction amount in Dollar terms as on date of transaction ($75,000*1.17) $ 87,750
Transaction amount in Dollar terms as on Year end 31/12/2017 ($75,000*1.14) $ 85,500
Decrease in asset ($ 87,750 -$ 85,500 ) $ 2,250
Since will have Decrease in asset of the amount of $2,250 in 2017 which means that their is foreign exchange loss due to DECREASES in dollar value
B. Calculation for does the fluctuation in exchange rates affect Butanta's 2018 income statement
Transaction amount in Dollar terms as on Year end 31/12/2017 (75,000*1.14) $ 85,500
Transaction amount in Dollar terms as on date of receipt of payment 10/1/2018 (75,000*1.10) $ 82,500
Decrease in asset (85,500 - 82,500) $ 3,000
Since will have Decrease in asset of the amount of $3,000 in 2018 which means that their is foreign exchange loss due to DECREASES in dollar value
Information related to plant assets, natural resources, and intangibles at the end of 2020 for Concord Company is as follows: buildings $1,030,000, accumulated depreciation—buildings $653,000, goodwill $410,000, coal mine $496,000, and accumulated depletion—coal mine $108,000.
A.nswer and Explanation:
The preparation of the partial balance sheet is as follows;
Assets
Long term assets:
Plant, property & equipment
Coal mine $496,000
Less: Acc. depletion, coal mines -$108,000 $388,000
Buildings $1,030,000
Less: Acc. depreciation, buildings - $653,000 $377,000
Total Plant, property & equipment $765,000
Goodwill $410,000
Total long term assets $1,175,000
The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $918,400. The conversion cost for the period in the Bottling Department is $516,000. The total equivalent units for direct materials and conversion are 28,700 and 8,600 liters, respectively. Determine the direct materials and conversion cost per equivalent unit.
Answer:
Equivalent Unit of Materials=$32
Equivalent Unit of Conversion Costs=$60
Explanation:
Calculation to Determine the direct materials and conversion cost per equivalent unit
Calculation for DIRECT MATERIALS
Using this formula for direct materials
Equivalent Unit of Materials=Cost of direct materials transferred/Total equivalent units for direct materials
Let plug in the formula
Equivalent Unit of Materials=$918,400/28,700 liters
Equivalent Unit of Materials=$32
Calculation for CONVERSION COST PER EQUIVALENT UNIT
Using this formula
Equivalent Unit of Conversion Costs=Conversion cost/Total equivalent units for Conversion
Let plug in the formula
Equivalent Unit of Conversion Costs=$516,000/8,600 liters
Equivalent Unit of Conversion Costs=$60
Therefore the direct materials and conversion cost per equivalent unit will be :
Equivalent Unit of Materials=$32
Equivalent Unit of Conversion Costs=$60
In addition to ensuring the transportation of people and products, workers in the Transportation and Logistics career cluster also
A. pass regulations for how to inspect vehicles, examine workplace safety, and plan systems to make traffic flow easier.
B. inspect and maintain vehicles, examine workplace safety, and plan systems to make traffic flow easier.
C. teach people how to inspect vehicles, develop workplace safety products, and plan systems to make traffic flow easier.
D. make vehicles that pass inspection, develop workplace safety products, and pass laws to make traffic flow easier
In addition to ensuring the transportation of people and products, workers in the Transportation and Logistics career cluster also inspect and maintain vehicles, examine workplace safety, and plan systems to make traffic flow easier. Thus, option B is correct.
What is logistics?Supply chain management includes logistics, which deals with the effective forward and reverse flow of goods, services, and related information from the point of origin to the site of consumption in accordance with customer needs. One element that keeps the supply chain together is logistics management. The resources controlled in logistics may include consumables like food and other consumables as well as tangible products like consumables like materials, equipment, and supplies.
In addition to the transportation of the troops themselves, military logistics is concerned with preserving army supply lines for food, weapons, ammunition, and spare components. The procurement, transportation, and storage of raw materials, semi-finished items, and final goods are the purview of civil logistics.
Therefore, we can conclude that option B is correct.
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What is the function of the Securities and Exchange Commission (SEC)?
O Monitors the money supply
O Purchases money securities
O Controls the amount of investments
O Regulates against fraud
On January 1, 2020, Walker Inc. acquired equipment for $56,000. The expected useful life is 10 years and the residual value is $1,120. Total service hours for the equipment are estimated to be 14,000 while actual hours for 2020 were 1,260. Compute depreciation expense in 2020, under the following methods.
A. Straight-line method.
B. Double-declining-balance.
C. Sum-of-the-year digits.
D. Units-of-production.
Answer:
$5488
$11,200
$9978.18
$4939.20
Explanation:
A. Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($56,000 - $1120) / 10 = $5488
Depreciation expense for each year of the useful life would be $5488
B. Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation factor = 2 x (1/10) = 1/5
1/5 x $56,000 = $11,200
C. Sum-of-the-year digits = (remaining useful life / sum of the years ) x (Cost of asset - Salvage value)
Sum of the years = 1 +2 +3 +4 + 5 + 6 + 7 + 8 + 9 + 10 = 55
Undepreciated life of the asset = 10
10/ 55 x ($56,000 - $1120) = $9,978.18
D. (hours used in year 1 / total number of hours of the machine) x (Cost of asset - Salvage value)
(1260 / 14,000) x ($56,000 - $1120) = $4939.20
When setting a short-term financial plan, it should lover the following timeframe:
A) Less than a year
B) 1-5 years
C) Over 5 years
D) Retirement
Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $216,000. Estimated machine usage is 2,700 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours.
Required:
a. Compute the predetermined overhead rate.
b. Determine the amount of overhead to allocate to Job No. 551.
c. Prepare the entry to assign overhead to Job No. 551 on January 15.
Answer:
1. Predetermined Overhead Rate = Manufacturing overhead costs / Machine Hours
Predetermined Overhead Rate = $216,000/2,700 hours
Predetermined Overhead Rate = $80 per machine hour
2. Allocated overheads =Predetermined Overhead Rate * Machine hours used by Job 551
Allocated overheads = $80 * 90 machine hour
Allocated overheads = $7,200
3. Date Description Debit Credit
15/01 Work In Progress Inventory $7,200
Manufacturing overhead $7,200
(To record allocation of overheads towards Job 551)
An increase in demand and an increase in supply will lead to:_______
Answer:
increase in the equilibrium quantity
Explanation:
The equilibrium quantity for a product is defined as a point where the supply of a product is equal to the demand of that product. The demand curve as well as the supply curve have opposite trajectories and they eventually intersects creating an economic equilibrium and a equilibrium quantity.
Whenever there is an increase in the supply and an increase in the demand of a product, it will lead to the increase in the equilibrium quantity of the product.
If the ending inventory in the previous period was understated $17,000 and the ending inventory in the current period was overstated $27,000. Which of the following is understated in the current period?
a. Owner's equity
b. Cost of goods sold
c. Net income
d. All the other answers are correct
Answer:
In the current period,
b. Cost of goods sold
Explanation:
With the current period's beginning inventory (or previous period's ending inventory) understated by $17,000 and the overstatement of the current period's ending inventory by $27,000, it implies that the Cost of goods sold is understated by $10,000. Once this cost is understated, the net income will be overstated, as well as the owner's equity (via the retained earnings).
The opportunity to defer investing in a project until a later date may have value primarily because: __________
a. the option to abandon may disappear.
b. investment costs tend to increase over time.
c. market conditions may improve.
d. the cost of capital may increase.
e. project cash flows may be lower in the future.
Answer:
c. market conditions may improve.
Explanation:
Investing in the right time and at the right place is very important. It can help to make money or profit or to loose money.
When a company permanently rejects the opportunity to invest in a project to day may not be a good or a wise decision mainly because the company is foregoing all the possible future options. And so the opportunity to postpone an investment by a company in a project until another time in the future has value as in the future the market condition may improve. And it will be better to invest at that time in the project.
Suppose that your demand schedule for pizza is as follows:
Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded
(Dollars) (Income = $20,000) (Income = $24,000)
8 40 50
10 32 45
12 24 30
14 16 20
16 8 12
Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is 0.27/0.20/5.00/3.75 if your income is $20,000 and 5.00/0.27/0.20/3.75 if your income is $24,000.
If the price of a pizza is $10, your income elasticity of demand is 1.22/0.07/0.10/1.86 as your income increases from $20,000 to $24,000. However, if the price of a pizza is $14, your income elasticity is 1.86/0.07/0.10/1.22.
Answer:
1. 5.00
2. 3.75
3. 1.86
4. 1.22
Explanation:
The calculations are all in the attachment.
1. As the price elasticity goes from $14 to $16, the price of pizza becomes $5 at an income of $20,000
2. With income = $24000, if the price should move from $14 to $16, the price elasticity of demand is 3.75
3. With the price of pizza at $10, the income elasticity of demand as income rises from 20000 to 24000 = 1.86
4. If we have price if pizza as 24 dollars, with income rising from $20000 to $24000, then the income elasticity of demand = 1.22
Please check the attachment for the calculations
The income elasticity of demand as your income increases from $20,000 to $24,000, with a price of $10, is 0.07 if the price of a pizza is $10. However, if the price of a pizza is $14, the income elasticity is 0.10. The correct option is C.
Income elasticity of demand is a measure that indicates how sensitive the quantity demanded of a good or service is to changes in income. It measures the percentage change in the quantity demanded divided by the percentage change in income.
If the income elasticity of demand is positive, it indicates that the good is a normal good, meaning that as income increases, the quantity demanded of the good also increases.
Thus, the ideal selection is option C.
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QUESTION 6 of 10: Pricing your new product based on what you pay for the parts inside it is called: a) Demand-based pricing b) Cost-based pricing c) Competition-based pricing
Answer: Cost Based pricing
Explanation:
. Job 1 pays $50,000 per year and offers 10 days of vacation. Job 2 pays $48,000 per year and offers 25 days of vacation. Which job has a higher pay per workday (Job 1 or Job 2)?
Answer:
Job option 2 has a high pay per day
Explanation:
Job option 1:
The total number of hours worked in job 1 will be 365- 10 days of vacation. Pay per day
=$50,000/ (365 - 10)
=$50,000/ 355
=$140,845
Job option 2:
total hours worked will be 365 - 25
Pay per day
=$48,000/ 340
=$141.17
Job option 2 has a high pay per day
Mary Beth purchased her primary residence for $280,000.00. As part of the closing procedure, she paid $2,900 in a loan origination fee, $750 to a lawyer to review the purchase contract and other closing papers, $150 for a property survey, and $1,200 for title insurance. She also gave the real estate agent a $100 gift certificate in appreciation for his hard work. What is Mary Beth's basis residence?
a. $280,000.
b. $281,350.
c. $282,100.
d. $282,900
Answer:
b. $281,350
Explanation:
Calculation for What is Mary Beth's basis residence
Cost price $280,000
Add Title Insurance $1,200
Add Property Survery $150
Mary Beth's basis residence $281,350
($280,000+$1,200+$150)
Therefore Mary Beth's basis residence will be $281,350
In the Control Process, it is important to use the proper comparison method when comparing task results with its objectives and standards. Out of the following alternatives methods, which method is not an acceptable method?
Historical comparison
Relative comparison method
Engineering comparison
Personal comparison
Answer: Personal comparison
Explanation:
When it comes to the Control Process, entities are allowed to use several comparison methods when comparing task results with objectives.
These include:
the Historical method where current performance is compared to past performancethe Relative comparison method where the organization's performance is compared against a benchmark of other organizations in the industry.Engineering comparison where schedules are used to ensure that activities finish on time.Personal comparison is not an acceptable method.
What is one of the Agile Release Train sync meetings?
a. Iteration Review
b. Solution DemoIteration
c. Retrospective
d. Scrum of Scrum
Answer:
D. Scrum of scrums
Explanation:
When groups are divided into Agile teams of 5persons to 10 persons, . Every daily scrum that is within each of these sub-team is usually ended by making one member in the sub team as ambassador. The ambassador would then participate in a daily meeting with other appointed ambassadors from other sub-teams. This Is what is known as the Scrum of Scrums.
Your perceived credibility determines how others receive and react to your communications. You will test your ability to identify actions that correspond with the three elements of credibility: competence, caring, and character. Match the action with the most appropriate area of credibility.
a. Following code of conduct
b. Doing what you say
c. Talking to customers
c. Talking to employees
d. Meeting deadlines
e. Encouraging openness
f. Gaining record of success
g. Sense ofaccountability
Answer:
Credibility
Matching the action with the most appropriate area of credibility:
Competence:
a. Following code of conduct
f. Gaining record of success
Character:
b. Doing what you say
d. Meeting deadlines
g. Sense of accountability
Caring:
c. Talking to customers
c. Talking to employees
e. Encouraging openness
Explanation:
Competence is the professional skills and abilities that one needs in order to accomplish specific tasks. It is developed by experience. Caring is the compassion that one displays in understanding the interests of others and connecting with them. Character is the reputation that one gains by being committed to high morals and values.
job satisfaction or organizational commitment Which do you think would be more strongly related to performance?
Under the transactions approach used in financial accounting, every transaction has a single effect upon each party engaging in it.
a. True
b. False
Answer:
Under the transactions approach used in financial accounting, every transaction has a single effect upon each party engaging in it.
b. False
Explanation:
Every transaction has double effect upon each party that is engaged in it. Instead, a business records each transaction to show that it affects the accounting equation of assets = liabilities + equity. This implies that every transaction that occurs must have an effect on the asset side and the liabilities + equity side. While one account will be receiving value, another account will be giving out the value for the same transaction. This effect helps to keep the equation in balance at all times.
When a loan is considered uncollectible, the bank's accounting department will write (charge) it off the books by reducing the ______ and the ______ accounts. Which choice below correctly fills in the blanks in the preceding sentence? A. PLL, gross loans B. ALL, net loans C. ALL, gross loans D. PLL, net loans E. None of the above.
Answer:
C. ALL, gross loans
Explanation:
A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.
On the other hand, a deed of trust can be defined as a legal document used by a party (borrower) to pledge his or her property to another party (lender) as guarantee or collateral for the repayment of a loan. The deed of trust is typically made up of three (3) parties; the lender, borrower and a trustee.
When a loan is considered uncollectible, the bank's accounting department will write (charge) it off the books by reducing the ALL and the gross loans accounts. This is usually done in order to make the business attractive to potential investors or creditors and so as to reduce their tax liabilities.
Hence, when the payment for a particular debt is unrecoverable or uncollectible, it is often written off (charge-off) and subsequently removed as assets from the balance sheet.
How have developments in IT affected the supply characteristic of the job market?
Answer:
It's definitely reduced the need for mechanized work and increased demand in tech jobs.
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Jan. 1 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $29,000. 2 Paid rent on office and equipment for the month, $2,250. 3 Purchased supplies on account, $2,300. 4 Paid creditor on account, $825. 5 Earned fees, receiving cash, $15,660. 6 Paid automobile expenses (including rental charge) for month, $1,620, and miscellaneous expenses, $830. 7 Paid office salaries, $2,200. 8 Determined that the cost of supplies used was $1,350. 9 Withdrew cash for personal use, $2,800. Required: 1. Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of January 31, 2019. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for January. 5. Determine the increase or decrease in owner’s equity for January.
Answer:
Tri-City Realty
1. Journal Entries
Date Accounts Titles Debit Credit
Jan. 1 Cash $29,000
Common stock $29,000
To record the transfer of cash for common stock.
Jan. 2 Rent expense $2,250
Cash $2,250
Jan. 3 Supplies $2,300
Accounts payable $2,300
To record purchase of supplies on account.
Jan. 4 Accounts payable $825
Cash $825
To record the payment on account.
Jan. 5 Cash $15,660
Fees Revenue $15,660
To record earned fees.
Jan. 6 Automobile Exp. $1,620
Miscellaneous exp. 830
Cash $2,450
To record the payment of automobile and miscellaneous expenses.
Jan. 7 Office Salaries $2,200
Cash $2,200
To record the payment of office salaries.
Jan. 8 Supplies Expense $1,350
Supplies $1,350
To record the cost of supplies used.
Jan. 9 Drawings $2,800
Cash $2,800
To record cash withdrawn for personal use.
2.T-Accounts
Cash
Date Accounts Titles Debit Credit
Jan. 1 Common stock $29,000
Jan. 2 Rent expense $2,250
Jan. 4 Accounts payable 825
Jan. 5 Fees Revenue 15,660
Jan. 6 Automobile expenses 1,620
Miscellaneous expenses 830
Jan. 7 Office salaries 2,200
Jan. 9 Drawings 2,800
Jan. 9 Balance $34,135
Totals $44,660 $44,660
Common Stock
Date Accounts Titles Debit Credit
Jan. 1 Cash $29,000
Rent Expense
Date Accounts Titles Debit Credit
Jan. 2 Cash $2,250
Supplies
Date Accounts Titles Debit Credit
Jan. 3 Accounts payable $2,300
Jan. 8 Supplies expense $1,350
Jan. 9 Balance $ 950
Totals $2,300 $2,300
Accounts Payable
Date Accounts Titles Debit Credit
Jan. 3 Supplies $2,300
Jan. 4 Cash $825
Jan. 9 Balance $1,475
Totals $2,300 $2,300
Fees Revenue
Date Accounts Titles Debit Credit
Jan. 5 Cash $15,660
Automobile Expenses
Date Accounts Titles Debit Credit
Jan. 6 Cash $1,620
Miscellaneous Expenses
Date Accounts Titles Debit Credit
Jan. 6 Cash $830
Office Salaries
Date Accounts Titles Debit Credit
Jan. 7 Cash $2,200
Supplies Expense
Date Accounts Titles Debit Credit
Jan. 8 Supplies $1,350
Drawings
Date Accounts Titles Debit Credit
Jan. 9 Cash $2,800
3. Unadjusted Trial Balance as of January 31, 2019:
Accounts Titles Debit Credit
Cash $34,135
Supplies 950
Common stock $29,000
Accounts payable 1,475
Fees Revenue 15,660
Rent expenses 2,250
Automobile expense 1,620
Miscellaneous expense 830
Office salaries 2,200
Supplies expense 1,350
Drawings 2,800
Totals $46,135 $46,135
4a. Amount of total revenue recorded in the ledger:
= $15,660
b. Amount of total expenses recorded in the ledger:
= $8,250
c. Amount of net income for January:
= $7,410
5. Increase or decrease in owner's equity for January:
= $4,610
Explanation:
a) Total expenses:
Rent expenses 2,250
Automobile expense 1,620
Miscellaneous expense 830
Office salaries 2,200
Supplies expense 1,350
Total $8,250
b) Net Income:
Fees Revenue $15,660
Total expenses 8,250
Net income $7,410
c) Increase in Equity:
Net income $7,410
Drawings (2,800)
Increase = $4,610
Transfer payments alter household income, but they do not reflect the economy's production.
a. True
b. False
The definition of the economic concept of income is usually attributed to which of the following economists?
J. R. Hicks
Paul Samuelson
Ben Bernanke
Adam Smith
Answer: Adam Smith
Explanation:
The definition of the economic concept of income is usually attributed to Adam Smith. He's also regarded as the father of economics.
He wrote a book regarding the wealth of countries and how countries should hoard golds and encourage industrialization.
