Karla Tanner opens a Web consulting business called Linkworks
and completes the following transactions in its first month of
operations.
| April | 1 | Tanner invested $115,000 cash along with office equipment valued at $27,600 n the company in exchange for common stock. | ||
| 2 | The company prepaid $7,200 cash for 12 months’ rent for office space. (Hint: Debit Prepaid Rent for $7,200.) | |||
| 3 | The company made credit purchases for $13,800 in office equipment and $2,760 in office supplies. Payment is due within 10 days. | |||
| 6 | The company completed services for a client and immediately received $2,000 cash. | |||
| 9 | The company completed a $9,200 project for a client, who must pay within 30 days. | |||
| 13 | The company paid $16,560 cash to settle the account payable created on April 3. | |||
| 19 | The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) | |||
| 22 | The company received $7,360 cash as partial payment for the work completed on April 9. | |||
| 25 | The company completed work for another client for $2,640 on credit. | |||
| 28 | The company paid $6,200 cash in dividends. | |||
| 29 | The company purchased $920 of additional office supplies on credit. | |||
| 30 | The company paid $700 cash for this month’s utility bill. |
Required:
1. Prepare general journal entries to record these
transactions using the following titles: Cash (101); Accounts
Receivable (106); Office Supplies (124); Prepaid Insurance (128);
Prepaid Rent (131); Office Equipment (163); Accounts Payable (201);
Common Stock (307); Dividends (319); Services Revenue (403); and
Utilities Expense (690).
2. Post the journal entries from part 1 to the
ledger accounts.
3. Prepare a trial balance as of April 30.
In: Accounting
Denzel Brooks opened a Web consulting business called Venture
Consultants and completed the following transactions in
March.
| March | 1 | Brooks invested $175,000 cash along with $28,000 in office equipment in the company in exchange for common stock. | ||
| 2 | The company prepaid $7,500 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $7,500. | |||
| 3 | The company made credit purchases of office equipment for $4,700 and office supplies for $2,200. Payment is due within 10 days. | |||
| 6 | The company completed services for a client and immediately received $4,000 cash. | |||
| 9 | The company completed a $11,100 project for a client, who must pay within 30 days. | |||
| 12 | The company paid $6,900 cash to settle the account payable created on March 3. | |||
| 19 | The company paid $8,200 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $8,200. | |||
| 22 | The company received $3,200 cash as partial payment for the work completed on March 9. | |||
| 25 | The company completed work for another client for $4,000 on credit. | |||
| 29 | The company paid a $5,700 cash dividend. | |||
| 30 | The company purchased $800 of additional office supplies on credit. | |||
| 31 | The company paid $1,100 cash for this month's utility bill. |
Required:
1. Prepare general journal entries to record these
transactions using the following titles: Cash (101); Accounts
Receivable (106); Office Supplies (124); Prepaid Insurance (128);
Prepaid Rent (131); Office Equipment (163); Accounts Payable (201);
Common Stock (307); Dividends (319); Services Revenue (403); and
Utilities Expense (690).
2. Post the journal entries from part 1 to the
ledger accounts.
3. Prepare a trial balance as of the end of
March.
In: Accounting
Total revenue for producing 10 units of output is $5. Total revenue for producing 11 units of output is $9. Given this information, the
Average revenue for producing 11 units is $2.
Average revenue for producing 11 units is $4
Marginal revenue for producing the 11th unit is $2.
Marginal revenue for producing the 11th unit is $4.
|
Output |
Total Cost |
|
0 |
40 |
|
1 |
80 |
|
2 |
110 |
|
3 |
130 |
|
4 |
160 |
|
5 |
200 |
|
6 |
250 |
|
7 |
320 |
Refer to the above data. If product price is $30, the firm
will:
A. shut down.
B. produce 4 units and realize a $40 economic profit.
C. produce 6 units and realize a $70 loss.
D. produce 5 units and incur a $60 loss.
In: Economics
What does the revenue equivalence theorem say? Given an example to illustrate the revenue equivalence theorem.
In: Economics
Explain the relationship between elasticity, total revenue, and marginal revenue. If you have a new product in the market, will you set the product price in the elastic or inelastic area? Why?
In: Economics
Use the cost and revenue data to answer the questions.
| Quantity | Price | Total revenue | Total cost |
|---|---|---|---|
| 1010 | 9090 | 900900 | 675675 |
| 1515 | 8080 | 12001200 | 825825 |
| 2020 | 7070 | 14001400 | 10251025 |
| 2525 | 6060 | 15001500 | 12501250 |
| 3030 | 5050 | 15001500 | 15001500 |
| 3535 | 4040 | 14001400 | 18501850 |
If the firm is a monopoly, what is marginal revenue when quantity is 2525 ?
MR = $
Not a valid number
tools
x10y
What is marginal cost when quantity is 1515 ?
MC = $
Not a valid number
tools
x10y
If this firm is a monopoly, at what quantity will marginal profit be $0.00?
quantity =
Not a valid number
tools
x10y
If this is a perfectly competitive market, which quantity will be produced?
quantity =
Not a valid number
tools
x10y
Comparing monopoly to perfect competition, which of the statements are true? Select all that apply.
The monopoly is likely to be less responsive to consumers.
The perfectly competitive market's ouput is lower.
The monopoly's price is higher.
In: Economics
Why should auditors assume revenue is misstated? What type of misstatement is typical for revenue? Under what circumstances my revenue be misstated in an atypical manner?
In: Accounting
1. Explain the reason for revenue decoupling and how it works. (Hint: Explain how revenue decoupling is a deviation from traditional rate-of-return/cost-of-service regulation).
2. What is the difference between a reserve and resource? How does economics play a role?
3. Deregulation of electricity markets leads to different electricity prices on different days and at different times of a day. Using a supply-demand diagram, explain why electricity prices tend to be volatile under such pricing. (Hint: how would you characterize the price elasticity of supply and demand at peak periods?)
4. What is the first-best policy instrument to mitigate climate change in the energy industry? How does the performance of subsidies for renewable energy compare with the first-best policy? (Response can be in list form here.)
5. What is the difference between a reserve and resource? How does economics play a role?
In: Economics
Marginal Revenue
The management of Ditton Industries has determined that the daily marginal revenue function associated with selling x units of their deluxe toaster ovens is given by the following, where R'(x) is measured in dollars/unit.
R'(x) = −0.1x + 40
(a) Find the daily total revenue realized from the sale of 230 units of the toaster oven.
(b) Find the additional revenue realized when the production (and sales) level is increased from 230 to 330 units.
In: Math
Part 4: Calculate the total revenue and marginal revenue for each output level. Your solution will need to be in a table.
Part 5: Apply the economic decision rule to determine the monopolists profit maximizing output level. Once you have determined the output level, identify the price the monopolist will charge.
Part 6: Calculate the consumer surplus, producer surplus and deadweight loss under the monopoly.
Part 7. Assume that the monopolist can perfectly price discriminate. What price does the monopolist charge each consumer? Write you answers in the table below.
|
Consumer Number |
Price |
|
1 |
|
|
2 |
|
|
3 |
|
|
4 |
|
|
5 |
|
|
6 |
|
|
7 |
|
|
8 |
|
|
9 |
|
|
10 |
Part 8: If the monopolist can perfectly price discriminate, what is consumer surplus, producer surplus and the deadweight loss?
In: Economics