2. Accounting for trade in goods and services Suppose the following transactions occur during the current...

2. Accounting for trade in goods and services

Suppose the following transactions occur during the current year:

1.	Dmitri orders 50 cases of beer from a Dutch distributor at a price of $40 per case.
2.	A U.S. company sells 200 transistors to a Spanish company at $15.00 per transistor.
3.	Jake, a U.S. citizen, pays $1,500 for a laptop he orders from Microell (a U.S. company).

Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year.

Hint: Be sure to enter a “0” if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.

	Amount
	(Dollars)
Consumption
Investment
Government Purchases
Imports
Exports
Net Exports
Gross Domestic Product (GDP)

Expert Solution

Rahul Sunny answered 1 year ago

Suppose the following transactions occur during the current year: 1. Tim orders 40 cases of beer...

Suppose the following transactions occur during the current year: 1. Tim orders 40 cases of beer from a Dutch distributor at a price of $40 per case. 2. A U.S. company sells 200 transistors to a Spanish company at $15.00 per transistor. 3. Brian, a U.S. citizen, pays $1,100 for a computer he orders from Dellosoft (a U.S. company). Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts...

The following transactions occur for the Wolfpack Shoe Company during the month of June: Provide services...

The following transactions occur for the Wolfpack Shoe Company during the month of June: Provide services to customers for $24,000 and receive cash. Purchase office supplies on account for $14,000. Pay $5,800 in salaries to employees for work performed during the month. 3. Post the transactions to T-accounts. Assume the opening balance in each of the accounts is zero.

The following are operating transactions that occur during the current year. Analyze each transaction and explain...

The following are operating transactions that occur during the current year. Analyze each transaction and explain if the transaction will increase, decrease, or have no effect on the working capital. Please explain each answer fully a. Company purchased inventory on account, $5800; terms 2/10,n/30 b. Company borrowed $55,000 in a long term note. c. Old equipment with a book value of $2200 is sold for $1325 d. marketable securities are sold at a gain of $4800 e. Company paid $4200...

1. What would happen to demand for each of the following goods or services during current...

1. What would happen to demand for each of the following goods or services during current Covid-19 pandemic? Would demand increase or decrease? Why? Relate your answer to our economic theory. a. Restaurants b. Pizza delivery services c. Dollar store items d. Hand sanitizers e. Netflix video streaming f. Gasoline g. Cars h. Bikes i. Houses j. Chicken (given that beef and pork are more expensive due to lockdown of some meat processing companies)

What would happen to demand for each of the following goods or services during current Covid-19...

What would happen to demand for each of the following goods or services during current Covid-19 pandemic? Would demand increase or decrease? Why? Relate your answer to our economic theory. a) Restaurants b) Pizza delivery services c) Dollar store items d) Hand sanitizers e) Netflix video streaming f) Gasoline g) Cars h) Bikes i) Houses j) Chicken (given that beef and pork are more expensive due to lockdown of some meat processing companies)

Show the effect of the following transactions of Avis Services on the accounting equation.

Show the effect of the following transactions of Avis Services on the accounting equation. Use “+” to denote an increase, “–” to denote a decrease and “0” to denote no change to the elements of the equation. Copy the table in your answer book and follow the example given. The business uses the periodic inventory system.Assume that the bank balance is favourable at all times.Example: Paid the insurance premium by cheque, R500ASSETSEQUITYLIABILITIESNo.EquipmentReceivablesBank=CapitalProfit+Payablese.g.–R500–R500TRANSACTIONS2.1.1Purchased packing materials by cheque, R900.

The following selected transactions of Johnson Motors Company were completed during the current accounting year ended...

The following selected transactions of Johnson Motors Company were completed during the current accounting year ended December 31, 2019: March 1 – Borrowed $25,000 on a two-year, 8% interest-bearing note. Interest is paid annually in 2020 and 2021. April 1 – Borrowed cash and signed a $20,000, one-year, noninterest-bearing note. The note was discounted at an annual interest rate of 6%. June 1 – Purchased a truck with a list price of $33,000. Paid $3,000 cash and signed a $30,000,...

Suppose Cool Breeze Air Conditioner Company engaged in the following transactions during June of the current...

Suppose Cool Breeze Air Conditioner Company engaged in the following transactions during June of the current year: LOADING...(Click the icon to view the transactions.) Requirement Journalize the transactions. Assume Cool Breeze uses a perpetual inventory system. The company estimates sales returns at the end of each month. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Assume the company uses the net amount to record sales.) 3 Purchased inventory on account with...

Show the effect of the following transactions of Avis Services on the accounting equation. Use “+”...

Show the effect of the following transactions of Avis Services on the accounting equation. Use “+” to denote an increase, “–” to denote a decrease and “0” to denote no change to the elements of the equation. Copy the table in your answer book and follow the example given. The business uses the periodic inventory system. ■ Assume that the bank balance is favourable at all times. Example: Paid the insurance premium by cheque, R500 ASSETS EQUITY LIABILITIES No. Equipment...

Q1. Omar Co. is an accounting firm that provide accounting consultancy services. The following transactions took...

Q1. Omar Co. is an accounting firm that provide accounting consultancy services. The following transactions took place in Omar Co.: amounts in Saudi riyal a. In the 1st of January, Abdul-Aziz invested 6,000,000 in Omar Co. and he paid them in cash. b. In the 2nd of Jan, Omar Co. have purchased office equipment and paid 48,800 cash. c. In the 3rd of Jan, Omar Co. have purchased supplies on credit by 18,500. d. In the 25th of Jan, Omar...

Question