Answer:
I need help too, I'm about to fail this
Answer:
Journal Entries
Date Account Titles and Explanation Debit Credit
Oct. 1 Cash $34,040
Common Stock $34,040
(To record the cash is invested in the business)
Oct. 2 No Journal Entry $0
Oct. 3 Office Furniture $4,110
Accounts Payable $4,110
(To record the purchase of office furniture on account)
Oct. 6 Accounts Receivable $10,780
Service Revenue $10,780
(To record the services provided but cash is not yet collected)
Oct. 10 Cash $165
Service Revenue $165
(To record the services provided by cash)
Oct. 27 Accounts Payable $690
Cash $690
(To record the payment made on accounts payable
relating to office furniture)
Oct. 30 Salaries Expense $2,740
Cash $2,740
(To record the payment of salaries to the assistant)
Answer:
Journal entry For Depreciation
Date Account and explanation Debit Credit
July 1 Depreciation expense $7,500
(105000/7)*6/12
Accumulated depreciation-Machine $7,500
(To record Depreciation)
1) Journal entry
Date Account and explanation Debit Credit
July 1 Cash $45,500
Accumulated depreciation-Machine $67,500
Machine $105,000
Gain on Sale of Machine $8,000
(To record sale of Machine)
2) Journal entry
Date Account and explanation Debit Credit
July 1 Cash $25,000
Accumulated depreciation-Machine $67,500
(105000/7*4.5)
Loss on sale of machine $12,500
Machine $105,000
(To record sale of Machine)
Consumer demand, Opportunity cost
Answer:
C) earning an economic profit.
Explanation:
Since the market is in long run equilibrium, the demand = the supply of haircuts, and an increase in the quantity demanded will increase the equilibrium price in the short run, generating economic profits at least until more suppliers enter the market and long run equilibrium is established again. Economic profit doesn't exist when the market is at long run equilibrium.
*Economic profit = accounting profit - implicit costs. So economic profit being $0 in the long run doesn't mean the businesses are not making an accounting profit.
