On 31 December 2019, the following trial balance was extracted from the books of Syarikat Afif Resources:
Accounts   Debit (RM)   Credit (RM)
Capital       29,250
Drawings   4,600  
Cash   9,200  
Salaries and Wages   23,000  
Rental Revenue       68,000
Land   35,000  
Accounts Receivable   12,350  
Accounts Payable       18,000
Office Expenses   2,500  
Utility Expenses   1,700  
Prepaid Insurance   1,400  
Building   15,000  
Office Equipment   2,300  
Vehicles   4,200  
Inventory   4,100  
Unearned Rental Revenue       500
Depreciation Expenses   400  
   115,750   115,750
  
Additional information for adjustment at the end of the period is as follows:
i)   Salaries and wages accrued amounted to RM5,000.
ii)   Insurance premium expired for the year amounted to RM700.
iii)   Unearned rental revenue was RM350.
iv)   Utility bills amounted to RM200 were received but not yet paid.

You are required to answer the following questions:
a)   Prepare the adjusting entries needed on 31 December 2019.

b)   Prepare an adjusted trial balance as at 31 December 2019.

Enchanted Brides Ltd. sells complete bridal ensembles. The most expensive part of the ensemble is the wedding gown. Recognizing that some of its customers may not have enough immediate funds to purchase one of its gowns, the store provides a layaway plan. The customer selects a gown and the store agrees to hold the gown until it is paid for. The store sets up a monthy payment schedule for the customer, extending the payment time over six months to a year. The store charges an additional $35 layaway application fee and $100 in possible default charges. If all payments are made on schedule, the default charge reduces the final payment. If the customer defaults, the $100 is not refunded.

Question: Using the revenue recognition criteria, explain how the store should account for the monthly payments from the customer. Should the $35 storage fee be treated as revenue? Why or why not? Shoud the $100 default charge be treated as revenue? Why or why not? When should the store recognize the original cost of the wedding gown?

Create a balance sheet (assets, liabilities, equity, liabilities + equity) for Tech Co using the following information:

1. According to the model of Bertrand price competition, competing firms will set prices according to which rule:

2.

There are 2 firms that sell a certain software, Microsoft and Oracle. Microsoft invented the software and so they act as a market leader by first deciding how much of the software they are going to produce each month. Oracle observes this decision by Microsoft and then chooses how much they are going to produce. The marginal cost of producing the software is constant at $2 for both companies. The total market demand for the software is P = 84 - 0.2Q. According to the Stackelberg model, Microsoft will produce________________ units of the software as the first-mover and Oracle will produce _______________ units in response.


Answer BOTH questions to receive rating. If both questions are not answered, no rating will be given. BOLD all answers and make them clear and easy to read. Thanks.

Ebay manufactures from XY products from a process that yields a by-product called LAN. The by-product requires additional processing cost of $30,000. The by-product will require selling and administrative expenses totaling $20,000. It is Ebay's accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during  the year ended December 31, 2019 follows:

WAN

Units produced: 100,000
Market Value at SOP: $50
Unit Sold 60,000

LAN

Units produced: 8,000
Market Value at SOP: $10
Unit Sold: 8,000

The joint cost incurred up to split off point are:

Direct materials $2,000,000
Direct Labor $ 800,000
Factory Overhead $200,000

The selling and administrative expenses of Ebay for the year ended December 31, 2019 is $1,000,000 exclusive of that for the by-product.

What is the gross profit for the year if the net revenue from by-product is presented as the additional sales revenue?

What is the gross profit for the year if the net revenue from by-product is presented as other income?

Suppose that you were part of the management team for the Bedrock Stone Company and the President of the Firm MR. Slate asked you to determine how much output the company should produce. The Current market price for stone is $5 per ton.

A)      What is the profit maximizing level of output?

B)      What is the marginal revenue at that level of output?

C)      Competition has been fierce in the stone business and Mr. Slate has asked you to develop a report indicating in the event that price begins to fall when should he send Barney and Fred home while the company remains idle?

D)      Is Mr. Slate likely to enjoy these profits over the long-run? Why or Why not?

Problem 4.-2: The trial balance columns of the worksheet for Firmament Roofing at March 31, 2014, are as follows.

Firmament Roffing

Trial Balance

For the Month Ended March 31, 2014

                                                                                                            Trial Balance_____

                  Account Titles                                                           Dr.                            Cr.__

Cash                                                                                            2,720

Accounts Receivable                                                                 2,700

Supplies                                                                                      1,500

Equipment                                                                                11,000

Accumulated Depreciation – Equipment                                                                   1,250

Accounts Payable                                                                                                       2,500

Unearned Service Revenue                                                                                          550

Share Capital – Ordinary                                                                                          10,000

Dividends                                                                                    1,100

Service Revenue                                                                                                        6,300

Salaries and Wages Expense                                                   1,300

Miscellaneous Expense                                                               280                     ______

                                                                                                  20,600                      20,600

Other data:

1. A physical count reveals only $550 of roofing supplies on hand.

2. Depreciation for March is $250.

3. Unearned revenue amounted to $290 at March 31.

4. Accrued salaries are $480.

Instructions:

(a) Journalize the adjusting entries.

(b) Journalize the closing entries.

(c) Prepare an income statement and a retained earnings statement for the month of March and a classified statement of Financial Position at March 31.

On January 1, 2018 Kimmel Company accepts a $53000 non interest bearing note from a customer for services provided. The note is to be paid in 4 equal installments every 6 months (payments every July 1 and January 1 with the first payment on July 1, 2018) An assumed interest rate of 9% is implied. Round installments to the nearest dollar.

A) Prepare an amortization table for this note. Round amounts to the nearest dollar. Clearly label your rows with dates for each recognition of interest revenue/discount amortization and for each installment payment. NOTE: Kimmel Corp prepares financial statements (and recognizes interest revenue) semiannually on each June 30th and December 31st.

B) Prepaire T Accounts for note receivable and discount on notes receivable witha ll entries posted from 1/1/18 to 12/31/18

C) How much interest revenue would be on the income statement for the year ended December 31,2018?

23. what group in a country lose as a result of a tariff?

a.gavernment

b. domestic producers

c. Domestic consumers

d. all of above lose

24. What insight has experimental economics given to the field of economics?

25. Which of the following is true at equilibrium?

a. all of above

b. unexploited gains from trade remain in the market

c. producer surplus is maximized

d. quantity supplied equals quantity demanded

26. A new tariff is placed on imported cars in the amount of $2,000 per car. if 900,000 cars were imported before the tariff and 825,000 are after the tariff then

a. the government gets tariff revenue of $150 million

b. consumers surplus decreases by $1.8 billion

c. the government gets tariff revenue of $1.65 billion

d.75,000 more domestic cars are sold after the tariff

27. Tariff produce deadweight losses due to

a. a reduction in the number of trades

b. domestic producer profits increasing

c. an increase in imports

d. the government receiving tax revenue