Question 1

Which of the following is not a characteristic of the structure of perfectly competitive markets?

Each individual firm is small in size relative to the overall market.

Few sellers.

Homogeneous product.

Easy, low cost entry and exit.

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Question 4

Marginal revenue is the change in:

total revenue resulting from a one unit change in output.

total revenue resulting from a change in marginal cost.

price resulting from a one unit change in output.

none of these.

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Question 5

Perfectly competitive markets are characterized by:

a small number of very large producers.

very strong barriers to entry and exit.

firms selling a homogeneous product.

all of these.

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Question 7

Price discrimination requires:

a firm to be a competitive firm.

a firm to be able to segment its customers based on different price elasticities of demand.

arbitrage.

that the product can be easily resold.

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Question 9

Compared to a perfectly competitive firm, a monopolist:

charges a higher price.

produces lower output.

fails to achieve an efficient allocation of resources.

all of these.

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Question 14

Which of the following is the best example of an oligopoly?

Area restaurants.

The automobile industry.

Agricultural markets free of government support.

Local utilities.

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Question 18

Since the demand for labor depends on the demand for the product labor produces, the demand for labor is called:

primary demand.

secondary demand.

dependent demand.

derived demand.

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Question 19

The demand for a factor of production depends on the:

supply of the factor.

supply of other factors of production.

demand for other factors of production.

demand for the products that it helps to produce.

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Question 20

Exhibit 11-2 Labor and output data

Labor    Output

0                 0

1             20

2             45

3             80

4             100

5             110

In Exhibit 11-2, the marginal product of the 4th unit of labor is equal to:

80.

45.

35.

100.

20.

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate Construction uses the completed contract method of accounting for long-term construction contracts.

Required:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred).
3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

The Unadjusted Trial Balance has been prepared (provided below and also in ThreeBrothers worksheet.xlsx), showing only those accounts with a non-zero balance. You have gathered the following information that will be helpful in preparing any necessary adjusting entries (add any accounts necessary). Good luck!

ThreeBrothers uses a periodic FIFO inventory system for its normal operations. A physical inventory count indicated 40,000 units on hand at the end of 2017.

                                    PURCHASES FOR 2017(normal operations)

Question - ThreeBrothers uses straight-line depreciation and all fixed assets were purchased at the beginning of 2014 and have a 5-year useful life. No depreciation entries have been recorded in 2017.

I need the adjusting journal entry and closing journal entry - for the question, if necessary. Thank You.

On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $52,810 Sales Taxes Payable 8,770 Unearned Service Revenue 16,470 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $21,384, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,590. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2014 ($8,770). 20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. 21 Borrowed $29,250 from Girard Bank on a 3-month, 8%, $29,250 note. 25 Sold merchandise for cash totaling $11,556, which includes 8% sales taxes. Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 5 Jan. 12 Jan. 14 Jan. 20 Jan. 21 Jan. 25 SHOW LIST OF ACCOUNTS LINK TO TEXT Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the current liabilities section of the balance sheet at January 31, 2015. Assume no change in accounts payable. Accardo Company Balance Sheet (Partial) January 31, 2014 $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT

Option #1: The Four Steps in the Accounting Process

You own an independent CPA firm. One client had the following transactions in January 20x7.

Issued share capital for $5,000 cash

Purchased $3,000 of equipment on credit

Paid $600 cash for this month’s rent

Purchased on credit $3,000 of supplies to be used next month

Billed $3,500 to customers for repairs made to date

Paid cash for one-half of the amount owing in Transaction 4

Collected $400 cash of the amount billed in Transaction 5

Sold one-half of the equipment purchased in Transaction 2 for $1,200 in cash.

Required:

Use the four steps in the accounting process to analyze business transactions, a) Identifying transactions and source documents, b) Analyzing transactions using the accounting equation, c) Recording the journal entry and d) Posting the entry to the ledger to complete the following:

Prepare journal entries for each of the above transactions.

Post the journal entries to T–accounts and total the accounts.

From the T–accounts, prepare an unadjusted trial balance. List expenses in alphabetical order.

Use the following chart of accounts names and the template:

Cash, Capital Stock, Equipment, Accounts Payable, Rent Expense, Supplies, Accounts Receivable, Revenue.

Exercise 11-4

Osage Corporation issued 2,550 shares of stock.

Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

**THE AMOUNTS ARE NOT MISSING. THEY ARE IN THIS PARAGRAPH. THE GENERAL LEDGER IS JUST SHOWING YOU THE OPTIONS FOR JOURNAL ENTRIES**

Inder Corporation is experiencing a temporary cash shortage and decides to transfer a group of its accounts receivable to Newton Company on March 22. Inder does not normally transfer its receivables. Newton accepts $80,000 of Inder’s accounts receivable, remits 90% of the accounts receivable transferred, and charges a 16% commission on the gross amount of the transferred receivables. Title to the receivables is transferred to Newton, and Newton has the right to assign, pledge, or sell the receivables. During the period, sales returns and allowances on transferred accounts amounted to $1,500.

General Journal information

Multiple-Step Income Statement and Profit Margin The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year: Advertising expense $1,574 Interest expense $1,504 Commissions expense 2,316 Interest revenue 1,391 Cost of goods sold 29,210 Rent revenue 7,271 Depreciation expense - office building 3,088 Salaries and wages expense—office 11,357 Income tax expense 1,510 Sales revenue 48,053 Insurance expense - salesperson’s auto 2,142 Supplies expense—office 920 Required: Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.

1. Prepare a multiple-step income statement for the current year.

   Shaw Corporation
   Income Statement
   For the Current Year
   		$fill in the blank 23358a02bfacfa2_2
   		fill in the blank 23358a02bfacfa2_4
   			$fill in the blank 23358a02bfacfa2_6
   Operating expenses:
   Selling expenses:
   	$fill in the blank 23358a02bfacfa2_8
   	fill in the blank 23358a02bfacfa2_10
   	fill in the blank 23358a02bfacfa2_12
   Total selling expenses		$fill in the blank 23358a02bfacfa2_13
   General and administrative expenses:
   	$fill in the blank 23358a02bfacfa2_15
   	fill in the blank 23358a02bfacfa2_17
   	fill in the blank 23358a02bfacfa2_19
   Total general and administrative expenses		fill in the blank 23358a02bfacfa2_20
   Total operating expenses			fill in the blank 23358a02bfacfa2_21
   			$fill in the blank 23358a02bfacfa2_23
   Other revenues and expenses:
   		$fill in the blank 23358a02bfacfa2_25
   		fill in the blank 23358a02bfacfa2_27
   		fill in the blank 23358a02bfacfa2_29
   Excess of other revenues over other expenses			fill in the blank 23358a02bfacfa2_30
   			$fill in the blank 23358a02bfacfa2_32
   			fill in the blank 23358a02bfacfa2_34
   			$fill in the blank 23358a02bfacfa2_36

   2. What advantage do you see in multi-step income statement?
   

   3. Compute Shaw's profit margin. Round your answer to one decimal place.
   fill in the blank 044f5b03efe9fc2_2 %

   4. Reflect on the profit margin determined above. What does this mean?
   

Check My Work

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 1,491,000 $ 3,195,000 $ 2,655,400 Estimated costs to complete as of year-end 5,609,000 2,414,000 0 Billings during the year 1,100,000 3,586,000 5,314,000 Cash collections during the year 900,000 2,700,000 6,400,000 Westgate Construction uses the completed contract method of accounting for long-term construction contracts. Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. 2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred). 3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. 2018 2019 2020 Cost incurred during the year $ 2,590,000 $ 3,895,000 $ 3,290,000 Estimated costs to complete as of year-end 5,790,000 3,290,000 0 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. 2018 2019 2020 Cost incurred during the year $ 2,590,000 $ 3,895,000 $ 4,185,000 Estimated costs to complete as of year-end 5,790,000 4,290,000 0