1)

A company raises $100,000 cash by issuing common stock (CS). What is the effect of this transaction on the Balance Sheet?

A-- Liabilities Increase. Equity Increases.

B-- Assets Increase. Liabilities Increase.

C--Assets Increase. Revenue Increases.

D-- Assets Increase. Equity Increases.

2)

On May 1st Sarif Industries paid $24,000 to Detroit Realty for 6 months rent beginning June 1st. The company did the correct recording on May 1st. What is the effect of this transaction on the Balance Sheet?

A-- Assets Remain Unchanged

B-- Assets Decrease. Liabilities Decrease.

C-- Assets Increase. Liabilities Increase.

D-- Assets Decrease. Equity Decreases

3)

BellTower Company collected $13,000 in June of 2019 for 7 months of service which would take place from October of 2019 through April of 2020. What's the impact of Belltower's June collection of this money on the Balance Sheet?

A-- Increase Assets. Increase Liabilities

B-- Increase Assets. Increase Equity

C-- Increase Assets. Increase Expense..

D-- Increase Assets. Increase Revenue

4)

An Increase in an Asset account would also cause which of the following to occur?

A-- No other entry would occur

B-- A Decrease in Equity

C-- An Increase in Liabilities

D-- A Decrease in Liabilities

1- The impact of tax on markets and welfare distribution. [70 points, 10 points each part]

Use supply and demand diagrams to answer the following questions. Draw new diagrams for answers to EACH part.
a- Show that regardless of who the tax is levied on (consumers or producers), a tax increase the price paid by consumers, decrease the price received by producers, and make the market smaller compared with a free market. Notes: You should use two diagrams, one for tax on consumers and one for tax on producers.
b- Show that regardless of who the tax is levied on (consumers or producers) the burden of tax will be shared between consumers and producers
c- Show that the burden of tax falls more heavily on relatively more inelastic side of the market.
d- Show that the greater the elasticity of supply and demand, the greater the deadweight loss of a tax.
e- Show that the greater the elasticity of supply and demand, the smaller the tax revenue generated by a given tax.
f- Show that, fixing elasticity of supply and demand, the impact of an increase in tax rate on tax revenue depends on whether the initial tax rate is “too low” or “too high”.
g- Show that the relatively more elastic side of the market benefits relatively less from a given tax cut.

Thank you!

"Revenge of the​ Panthers" becomes a wildly successful movie for Ork Studios. It cost $105 million to​ make, and grossed $360million at the box office worldwide. Its​ star, J.P.​ Cruise, has demanded an additional $18 million fee to star in​ "Revenge of the Panthers​ 2". Factoring in this fee​ increase, and an average drop of​ 30% in revenue for a​ sequel, Ork Studios can expect a profit of

​$______million from this sequel. ​(Enter your response rounded to one decimal​ place.)

Considering the marginal benefit and marginal​ cost, will​ "Revenge of the Panthers​ 2" be made into a​ film? Yes or No

After​ "Revenge of the Panthers​ 2" is​ released, Ork Studios is considering whether to make​ "Revenge of the Panthers​ 3: On the​ Prowl". J.P. Cruise will only agree to star in this movie if it is done in IMAX​ 3-D, which adds an additional $45 million to the cost of making the film. He also demands an additional $20 million to star in this film​ (above what he was paid for Revenge of the Panthers​ 2).

Factoring in these increased costs and a drop of​ 30% in revenue from the first​ sequel, the profit of producing​ "Revenge of the Panthers​ 3: On the​ Prowl" is

​$____ million. ​(Enter your response rounded to one decimal place and include a minus sign if​ necessary.)

Considering the marginal benefit and marginal​ cost, will​ "Revenge of the Panthers​ 3: On the​ Prowl" be made into a​ film?

For the purposes of this problem, the quantity produced (?) will be measured in units of hundreds of customers per month. Prices and costs will be measured in “dollars per drinker”. “Dollars per drinker” is a measure of the price (or cost) for the mixture of beer, cocktails, and hard alcohol consumed by an average patron on an average night. Note that the units do not affect your method of solving the profit-maximization problem as long as the units are consistent. However, you should convert the quantities and prices back to single drinkers and dollars at the end.

There is a single liquor license for a small town held by a bar.

The bar faces the demand curve:

? = 30 − 0.5?

and has the cost function:

? = ? 2 + 6? + 48

a) Solve the monopolists’ problem (finding optimal quantity, price, and profit) with output as the choice variable and setting marginal revenue equal to marginal cost.

b) Solve the monopolists’ problem (finding optimal quantity, price, and profit) with output as the choice variable and setting marginal profit equal to zero.

c) Solve the monopolists’ problem (finding optimal quantity, price, and profit) with price as the choice variable and setting marginal profit equal to zero.

d) Graph the monopolists’ problem indicating demand, marginal revenue, marginal cost, average total cost, optimal output, optimal price, and profit

Blossom Company has provided information on intangible assets as follows.

A patent was purchased from Ford Company for $2,300,000 on January 1, 2016. Blossom estimated the remaining useful life of the patent to be 10 years. The patent was carried in Ford’s accounting records at a net book value of $1,800,000 when Ford sold it to Blossom.

During 2017, a franchise was purchased from Polo Company for $500,000. In addition, 4% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2017 was $2,300,000. Blossom estimates the useful life of the franchise to be 10 years and takes a full year’s amortization in the year of purchase.

Blossom incurred research and development costs in 2017 as follows.

Blossom estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses.

On January 1, 2017, because of recent events in the field, Blossom estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017.

1) Prepare the intangibles section of Blossom’s balance sheet at December 31, 2017.

2) Prepare the income statement effect (related to expenses) for the year ended December 31, 2017, as a result of the facts above.

You've been hired by ABC Company to review several transactions that were omitted as Adjusting Entries at December 31, 2015 as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below, record the appropriate AJE that would have been required at December 31st.

Transactions:                                               

A. On September 1, 2015, ABC received a $15,000 advance payment from a customer for services to be performed evenly over the next 15 months. The original entry was credited to a realaccount.

B. On March 1, 2015, ABC paid $12,720 for a four-year insurance policy. ABC debited a nominal account at that time.

For your account titles, choose from:  

Service Revenue

Unearned Revenue

Insurance Expense

Prepaid Insurance

（2）If ABC did not do either of the adjusting entries associated with Transactions A and B (from the above information) on December 31, 2015, determine the cumulative effect of all errors on assets, liabilities and equity at December 31, 2015.

Answer Format: Use O for overstated, U for understated, and NE for No Effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as O2000)

A firm in a competitive market is a price taker (recall that this is true for every firm and every customer in a perfectly competitive market). For this example, the market equilibrium price is $6. The firm’s total cost (TC) function is made up of Fixed Cost (FC, which does not vary with quantity) and Variable Cost (VC, which does vary with quantity). The TC function for this firm is: TC = 10 + 2Q – 0.2Q2 + 0.01Q3 a) Find the equation for the marginal cost curve (MC). Recall that MC = TC/Q. b) Find the equation for the Average Variable Cost (AVC). Recall that AVC = VC/Q. c) Find the equation for the Average Total Cost (ATC). Recall that ATC = TC/Q. d) Find the fixed cost. Recall that Total Cost = Fixed Cost + Variable Cost. e) Find the Q at which profit is maximized. Recall that this point is where Marginal Revenue ($6, the unit price of the good) is equal to Marginal Cost (for which you found the formula in part a). f) At the profit maximizing point, find the economic revenue (TR – TC at the profit maximizing Q). g) Find the shutdown price, where the Marginal Cost curve intersects the AVC curve (MC= AVC) and the AVC curve is at its lowest point (AVC/Q = 0).

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed.

The actual operating results for August appear below.

Required:

Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,300 $ 0.07 Maintenance $ 0.25 Wages and salaries $ 4,000 $ 0.30 Depreciation $ 8,500 Rent $ 1,900 Administrative expenses $ 1,700 $ 0.02 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,600 Revenue $ 59,050 Expenses: Cleaning supplies 6,450 Electricity 1,865 Maintenance 2,365 Wages and salaries 6,910 Depreciation 8,500 Rent 2,100 Administrative expenses 1,770 Total expense 29,960 Net operating income $ 29,090 Required: Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Introduction/Discussion Task: Often, business decisions involve choosing between alternative courses of action, and companies tend to want to find the alternative that offers the highest revenue or the most significant reduction in costs. Non-routine decisions use differential analysis. These include make-or-buy choices, whether to retain or drop a product line, or even if a customer should be retained or dropped. In using differential analysis, common revenues and costs are factored out of the assessment, thereby focusing on revenue and cost information that is specific to a given product, customer, or another point to be analyzed. Use the basic knowledge acquired from differential analysis to respond to the following discussion task: Continuing with the company selected in Unit 2, think about the types of financial data that would be included and excluded in differential analysis. Propose which specific revenues and costs should be considered in an evaluation to drop or keep a: Customer Product line In addition, explain sunk and opportunity costs as they relate to your selected company. Should these costs be considered in differential analysis? Why or why not?

Note: Your discussion should have a minimum of 2 450 words. Please include a word count. Following the APA standard, use references and in-text citations from the textbook and any other sources.