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Dahasolnce [82]
2 years ago
9

True or false: allocative efficiency is achieved by equalizing consumer surplus and producer surplus

Business
1 answer:
zepelin [54]2 years ago
4 0
<span>THE EFFICIENT ALLOCATION OF LIMITED RESOURCES MOSTLY BEING FACTORS OF PRODUCTION TO COMPLETE A TASK. SO ALLOCATION EFFICIENCY PLAYS A VITAL ROLE TO ACHIEVE AND BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS . IT IS TRUE THAT ALLOCATION EFFICIENCY IS ACHIEVED BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS.</span>
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Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10.
Crank

Answer:

Vanishing Games Corporation (VGC)

1. Analysis of the effect of transactions on the accounting equation:

Assets  = Liabilities + Equity

Assets (Cash) increases +$52,500 and Assets (Accounts Receivable) decreases -$52,500 = Liabilities + Equity.

b. Assets (Cash) increases +$235,000 = Liabilities + Equity (Retained Earnings) increase + $235,000.

c. Assets (Equipment) increases +41,900; Cash decreases -$12,000 = Liabilities (Notes Payable) increase +$29,900 + Equity.

d. Assets (Cash) decreases -$15,600 = Liabilities + Equity (Retained Earnings) decrease - $15,600.

e. Assets (Cash) increases + $50,500 and (Accounts Receivable) increases + $50,500 = Liabilities + Equity (Retained Earnings) increase + $101,000.

f. Assets = Liabilities (Accounts Payable) increase +$5,900 + Equity (Retained Earnings) decrease -$5,900.

g. Assets (Cash) decreases - $310,000 = Liabilities + Equity (Retained Earnings) decreases - $310,000.

h. Assets (Supplies) increase + $5,100 = Liabilities (Accounts Payable) increase +$5,100 + Equity.

i. Assets (Cash) decreases - $5,100 = Liabilities (Accounts Payable) decrease - $5,100 + Equity.

2. Journal Entries:

a. Debit Cash Account $52,500

Credit Accounts Receivable $52,500

To record cash from customers.

b. Debit Cash Account $235,000

Credit Service Revenue $235,000

To record cash for service revenue.

c. Debit Equipment $41,900

Credit Cash Account $12,000

Credit Notes Payable $29,900

To record purchase of 10 new computer services

d. Debit Advertising Expense $15,600

Credit Cash Account $15,600

To record payment for advertising.

e. Debit Cash Account $50,500

Debit Accounts Receivable $50,500

Credit Service Revenue $101,000

To record subscriptions for services sold.

f. Debit Utilities Expense $5,900

Credit Utilities Payable $5,900

To record utilities expense.

g. Debit Wages & Salaries Expense $310,000

Credit Cash Account $310,000

To record wages paid.

h. Debit Supplies Account $5,100

Credit Accounts Payable $5,100

To record purchase of supplies on account.

i. Debit Accounts Payable $5,100

Credit Cash Account $5,100

To record payment on account.

3. T-Accounts:

                                             Cash Account

Beginning Balance       $2,360,000      c. Equipment                   12,000

a. Accounts Receivable       52,250      d. Advertising Expense 15,600

b. Electronic Arts, Inc.        235,000     g. Wages & Salaries     310,000

e. Service Revenue             50,500      i. Accounts Payable          5,100

                                       <u>                  </u>      Balance c/d             <u> 2,355,050</u>

                                        <u>2,697,750</u>                                        <u>2,697,750</u>

Balance b/d                     2,355,050

                                     Accounts Receivable

Beginning Balance        152,000           a. Cash                          52,250

e. Service Revenue        <u>50,500</u>           Balance c/d                 <u>150,250</u>

                                      <u>202,500</u>                                              <u>202,500</u>

Balance b/d                    150,250

                                        Supplies

Beginning Balance        19,100          Balance c/d                       24,200

Accounts Payable          <u> 5,100</u>                                                   <u>            </u>

                                     <u>24,200</u>                                                   <u>24,200</u>

Balance b/d                  24,200

                                       Equipment

Beginning Balance       948,000       Balance c/d                       989,900

c. Cash                            12,000

c. Notes Payable            <u>29,900</u>                                                <u>              </u>

                                     <u>989,900</u>                                                <u>989,900</u>

Balance b/d                  989,900

   

                                         Land

Beginning Balance    1,920,000

                                      Building

Beginning Balance     506,000

                                         Accounts Payable

i. Cash                               5,100         Beginning Balance           109,000

  Balance c/d                <u>109,000</u>         h. Supplies                            <u> 5,100</u>

                                     <u>114,100</u>                                                        <u>114,100</u>

                                                            Balance b/d                      109,000

                                       Unearned Revenue

                                                             Beginning Balance         152,000

                                         Advertising Expense

d. Cash                               15,600

                                         Utilities Expense

f. Utilities Payable                5,900

                                        Utilities Payable

                                                               f. Utilities Expense            5,900

                                        Wages & Salaries Expense

g. Cash                             310,000

                                         Service Revenue

                                                               b. Cash                             235,000

Balance c/d                       336,000         e. Cash                             50,500

                                        <u>               </u>        e. Accounts Receivable   <u> 50,500</u>

                                         <u>336,000</u>                                                 <u>336,000</u>

                                                               Balance b/d                      336,000

                                          Notes Payable (due 2018)

     Balance c/d           109,900           Beginning Balance            80,000

                                    <u>             </u>            c. Equipment                     <u>29,900</u>

                                   <u>109,900</u>                                                      <u>109,900</u>

                                                             Balance b/d                       101,000

                                           Common Stock

                                                              Beginning Balance     2,200,000

                                           Retained Earnings

                                                              Beginning Balance     3,364,100

4. Trial Balance as at January 31:

                                              Debit                  Credit

Cash                                  $2,355,050

Accounts Receivable              150,250

Supplies                                    24,200

Equipment                              989,900

Land                                     1,920,000

Building                                  506,000

Advertising expense                15,600

Utilities Expense                        5,900

Utilities Payable                                                 $5,900

Wages & Salaries                  310,000

Service Revenue                                             336,000

Notes Payable                                                  109,900

Accounts Payable                                            109,000

Unearned Revenue                                         152,000

Common Stock                                            2,200,000

Retained Earnings         <u>                    </u>           <u>3,364,100</u>

Total                               <u>$6,276,900 </u>        <u>$6,276,900</u>

Explanation:

a) Note: the adjustment of the Utilities could have been eliminated to produce the same result, with totals reduced by $5,900.

5 0
3 years ago
Which of the following ways of investing/saving is the most liquid?
charle [14.2K]
Savings accounts is the most liquid 
5 0
3 years ago
Select the items that describe how business investments can cause economic growth.
NikAS [45]
Investments can lead to more demand for goods. Investment means an increase in capital spending and is a component of Aggregate Demand (AD), if there is an increase in investment it will help to boost AD and therefore economic growth.
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3 years ago
The opening of which canal significantly reduced the time and money required to ship goods between the east coast and the west c
bazaltina [42]

Answer:

The Erie Canal

Explanation:

When it opened it dramatically decreased the cost of shipping while reducing the time to travel to the West.

8 0
2 years ago
Suppose you are the Purchasing Manager for a large chain of restaurants in the United States, and you need to make your semiannu
mrs_skeptik [129]

Answer with Explanation:

Requirement 1.

The US import will increase by $1,500,000 due to purchase of indian tea product and this import of tea would result in increase of capital outflow as the Net export particular to importation is negative hence capital outflow is genuine effect.

Requirement 2.

The Net exports can be calculated as under:

Net Exports = Exports - Imports  = 0 - $1,500,000 = - $1,500,000

The US Net Exports would decrease by $1,500,000.

4 0
2 years ago
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