Macro Company has the following adjusted accounts and balances at June 30:

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018.

Accounts Payable $ 602

Accounts Receivable 302

Accumulated Depreciation 902

Cash 302

Common Stock 202

Deferred Revenue 202

Depreciation Expense 302

Equipment 3,202

Income Tax Expense 302

Interest Revenue 102

Notes Payable (long-term) 202

Notes Payable (short-term) 502

Prepaid Rent 102

Rent Expense 402

Retained Earnings 1,502

Salaries and Wages Expense 2,202

Service Revenue 6,206

Supplies 502

Supplies Expense 202

Travel Expense 2,602

How do you prepare the closing entry required at September 30, 2018?

1. If the Price Elasticity of Demand (PED) = 1 then…

1. Price should be decreased to maximize revenue.
2. Price should be increased to maximize revenue.
3. Revenue is at its maximum.
4. Profit is at its maximum.

2. If the demand for good X shifts to the right as the price of good Y rises, then goods X and Y are:

1. Inferior goods.
2. Complementary goods.
3. Normal goods.
4. Substitute goods.

3. Which of the following is not a determinant of Price Elasticity of Demand (PED)?
   1. The availability of close substitutes.
   2. Time horizon: the passage of time.
   3. The proportion of income spent on the good.
   4. The preferences of sellers.

4. The concepts of Utility and Marginal Utility are only applicable for:

1. Markets for two goods.
2. All the consumers of one good or service
3. An individual consumer or household.
4. None of the above.

5. An explicit cost is …

1. A variable cost that increases with quantity.
2. A fixed cost that does not increase with quantity.
3. A cost that involves spending money.
4. The same as an opportunity cost.

List and explain the factors that influence price elasticity of demand. What will make demand more or less elastic?

Explain the relationship between price elasticity and total revenue.

Define and explain how marginal, total and average values are related in general and specifically for utility, product, cost, revenue and profit.

Explain why diminishing marginal utility is related to the Law of Demand.

Explain the difference between economic and accounting profit.

Explain why increasing MC is related to the Law of Supply.

Explain how differences in market structure (perfect competition, monopoly, monopolistic competition and oligopoly) affects how a firm perceives the demand curve and marginal revenue, and thus profit maximizing output and overall efficiency (price relative to marginal cost).

Explain how barriers to entry and long term price and profitability (P-AC) are related, and how that might impact antitrust and regulatory policy.

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $500  each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 100 people at each home game.

Part 1. The team earns an average of $________________ in revenue for each game and $______________ of revenue each season.

With total costs of $_____________ each season, the team finishes the season with $________________ of profit.

Part 2   In order to break even, the team needs to sell   tickets for each game. Round to the nearest whole number.

Take Five Systems, a new start-up, is developing a new iPhone application (“app”) and provides you with the following assumptions:

1. Development and testing of the new app will take four months. Month five is the first month of revenue generation.

2. Initial monthly app sales of 5,000 downloads at a price of $2.99

3. Unit sales will grow at 15% per month for months six through twelve and then will be flat thereafter

4. The app will become obsolete and will need to be revised/replaced after month 18

1. Take Five Systems is concerned about the accuracy of their revenue estimates in Question 1. Specifically, they wish to use sensitivity analysis to evaluate the impact on Month 18 revenue of the following:

   1. Variations in 2% increments between 9-21% in the growth rate of unit sales in Months 5-12 (that is, 9%, 11%,..., 19%, 21%)

   2. Variationin500unitincrementsbetween2,500and7,500inthelevelofinitial sales (that is, 2,500, 3,000,..., 7,000, 7,500)

please highlight the answer it's very urgent subject is ACC 111

Q: One principal difference between an adjusting journal entry and a journal entry to record a transaction is

1. The adjustment can be needed because of an internal event such as using supplies

2. The transaction involved accounts payable

3. The adjustment always reduces cash

4. The transaction always increases common stock

Q: When adjusting for insurance coverage expiring during a period

1. Insurance expense is increased

2. Prepaid insurance is decreased

3. Both A and B

4. Cash is increased

Q: When adjusting for depreciation expense

1. An expense is increased

2. A liability is decreased

3. A revenue is decreased

4. An equity account is increased

Q: When adjusting unearned revenue

1. Revenue is increased

2. A liability is decreased

3. Both A and B

4. Neither A nor B

Q: When adjusting for an accrued expense

1. An expense is reduced

2. A liability is increased

3. An equity account is increased

4. A revenue is decreased

Q; Adjusting for wages earned by employees but not yet recorded

1. Increases an expense

2. Increases a liability

3. Both A and B

4. Neither A nor B

Q : Omitting the adjustment for unrecorded revenue

1. Understates net income

2. Understates assets

3. Understates equity

4. All of the above

5. Q:Which of the following events requires an adjustment

6. Borrowing money on a loan where principal and interest are due at maturity

7. Hiring an employee

8. Asking for proposals from three advertising agencies

9. Discussing future price increases

Q: Which of the following events requires an adjustment

1. Discussing possible future changes to the company’s logo

2. Receiving and paying October’s water bill before October 31

3. Hiring an attorney and agreeing to pay a retainer immediately

4. Completing revenue on October 20 and billing the customer the same day

Q: Omitting the adjustment for unearned revenue

1. Understates net income

2. Overstates liabilities

3. Both A and B

4. Neither A nor B

Q: The main accounting principle that requires adjusting entries is

1. Substance over form

2. The cost principle

3. The going concern principle

4. The matching principle

Q: Smith Company owns its building and land. The annual property tax bill is $12,000. Assuming Smith adjusts its accounts each month they should

1. Debit property tax expense and credit property tax payable for $12,000

2. Make no adjustment at all since it has not yet been paid

3. Debit property tax payable and credit property tax expense for $1,000

4. Debit property tax expense and credit property tax payable for $1,000

Q: Adjusting journal entries

1. Are optional according to GAAP

2. Are only used in months that end in y

3. Always use the cash account

4. Never use the cash account

Q : When closing the accounts at the end of the period

1. All asset accounts are closed

2. All equity accounts are closed

3. All temporary or nominal accounts are closed

4. All liability accounts are closed

Q : Closing the accounts

1. Sets nominal accounts back to zero at the end of a period

2. Updates the retained earnings account

3. Enables meaningful comparison of one period’s results to those of another period

4. All of the above

Q : When closing the revenue account

1. The revenue account is credited

2. The revenue account is debited

3. The unearned revenue account is closed

4. The expense accounts are debited

Q : When closing the expense accounts

1. The income summary account is debited

2. The expense accounts are credited

3. Both A and B

4. Neither A nor B

Q : When closing the income summary account

1. The retained earnings account may be debited or credited

2. The dividends account is debited

3. The cash account is credited

4. The common stock account is debited

Q ; When closing the dividends account

1. The income summary account is debited

2. The retained earnings account is credited

3. The retained earnings account is debited

4. None of the above

Q : The reason permanent or real accounts are not closed is because

1. They recorded how much of something occurred during a period

2. They recorded how much of something remains at the end of a period

3. They will stay open as long as the company still exists

4. Both B and C