Answer:
The transaction costs associated with this exchange are $155
Explanation:
The computation of the transaction cost which is associated with this exchange is shown below:
= Ad charges in the newspaper + law firm write up charges
= $60 + $95
= $155
It includes various cost like - transportation cost, legal fees, communication charges, etc. 
The installation of Beth's new roof is not considered in the computation part because it is not an exchange transaction cost. So, this cost is ignored. 
 
        
             
        
        
        
Answer:
Minimun cost: $2000
Explanation:
We solve for the optimal order size using the 
Economic Order Quantity:

<u>Where:	</u>
D = annual demand =	2,000 boxes
S= setup cost = ordering cost =	$ 100
H= Holding Cost =	$10.00


EOQ 200
It should order: 2,000 demand / 200 order size =  10 times
At a cost of 1,000 dollar (100 units x $ 10)
It will face an average inventory of 100 units thus holding cost: 
100 units x 10 dollar per unit = 1,000
Total cost: 1,000 + 1,000 = 2,000
 
        
             
        
        
        
Answer:
Entries are given
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
                                             DEBIT           CREDIT
A. Kacy Spade, owner, invested cash in the company
Common stock                   14250
Cash                                                           14250
B. The company purchased office supplies 
Office supplies                      413
Cash                                                              413
C.The company purchased office equipment on credit
Office equipment                 7880
Payables                                                      7880
 D.The company received $1,681 in cash
Cash                                       1681
Fees earned                                                 1681
E. The company paid $7,880 cash to settle the payable
Payables                                7880
Cash                                                              7880
F. The company billed a customer $3,021 as fees 
Receivable                              3021
fees earned                                                   3021
G. The company paid $520 cash for the monthly rent.
Rental expense                        520
Cash                                                               520
H. The company collected $1,269 cash as partial payment
Cash                                         1269
Receivables                                                    1269
I. The company paid a $1,000 cash dividend to the owner
Retained earnings                  1000
Cash                                                                 1000