Larry, Moe, and Curly who share in income and losses in the ratio of 2:3:5, decided to discontinue operations as of April 30, 2013, and liquidate their partnership. After the accounts were closed on April 30, 2013, the following trial balance was prepared:

Larry, Moe, and Curly Post-Closing Trial Balance April 30, 2013

DEBIT

Cash 8,000 Noncash Assets 107,800

CREDIT

Liabilities 35,700 Larry, Capital 13,140 Moe, Capital 25,110 Curly, Capital 41,850

Totals: $115,800 $115,800

Between May 1 and May 18, the noncash assets were sold for $36,800, and the liabilities were paid. INSTRUCTIONS: 1. Assuming that the partner with the capital deficiency pays the entire amount owed to the partnership, prepare a statement of partnership liquidation. 2. Journalize the entries to record: a). the sale of assets. b). the division of loss on the sale of assets. c). the payment of liabilities. d). the receipt of the deficiency e). the distribution of cash to the partners.

Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows: Accounts Payable $37,200 Accounts Receivable 118,550 Accumulated Depreciation-Equipment 187,000 Cash ? Equipment 477,200 Land 300,000 Prepaid Insurance 6,200 Prepaid Rent 21,900 Salaries Payable 9,300 Cheryl Viers, Capital 714,600 Supplies 4,500 Unearned Fees 17,300 Prepare a classified balance sheet that includes the correct balance for Cash. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

2. Other than the four sectors in a closed society, what is the fifth sector for an open society?

3. A typical security in the money market is a. corporate stock b. corporate bond c. corporate commercial paper d. corporate mortgage

4. Explain who loses when the dollar strengthens:

5. Provide a general historic description of the predominant source and use of funds for thrifts.

6. Provide a general historic description of the predominant source and use of funds for pension plans.

7. Explain why/how contributions to mutual funds are often considered riskier than contributions to pension funds.

8. How do the customers of a finance company differ from the customers of banks generally?

Which accounts are closed at the end of an accounting period?

Select one:

a. Neither Interest Expense nor Paid-in-Capital from Stock Warrants

b. Both Interest Expense and Paid-in-Capital from Stock Warrants

c. Interest Expense, but not Paid-in-Capital from Stock Warrants

d. Paid-in-Capital from Stock Warrants, but not Interest Expense

An Economic Model of National Income in a Closed Private Economy in the Short Run

(We are assuming for this model that there is no trade, no government, and no business saving.)

C = 280 + 0.80*Y        Consumption Function [$Billion/year]

I = 620                         Planned Investment (Purchase of new capital goods and services) [$Billion/year]

Y                                 National Income [$Billion/year]

Part 1. What is the aggregate expenditure function in this model?

Part 2. Suppose firms expect to sell, and produce, 4725 $B worth of goods and services. There would be an unplanned change to inventories. What is the size of this unplanned change and how would you predict that firms would respond to this unplanned change in inventories?

Part 3. What are the equilibrium levels of GDP, Consumption, and Savings in this model?

Part 4. Find the value of the expenditure multiplier in this economy.

Part 5. If investment increases from 620 to 660, find the new equilibrium level of GDP.

Consider a closed economy described by the following:

Y = 2,000

G = 700

T = 500

C = 100 + 0.6(Y – T)

I = 750 – 50r

a.       Find consumption.

b.       Find the equilibrium interest rate.

c. Find investment.

d. Find private saving, public saving, and national saving.

Suppose in a closed economy, the government lowers taxes by 100 billion. If the marginal propensity to consume is 0.8 and the government purchases remain unchanged, what happens to the following? That is, do they rise or fall? By how much?

a.       Public saving.

b.       Disposable income.

c.       Household consumption.

d.       Private saving.

e.       National saving.

f.        Investment.

The following table contains data for a hypothetical closed economy that uses the dollar as its currency.

Suppose GDP in this country is $925 million. Enter the amount for consumption.

Fill the blank above for Consumption(CC)

Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.

Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.

Based on your calculations, the government is running a budget .......................... .

The following table contains data for a hypothetical closed economy that uses the dollar as its currency.

Suppose GDP in this country is $1,680 million. Enter the amount for consumption.

Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.

Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.

Based on your calculations, the government is running a budget