What does zero economic profit mean in a perfectly competitive market in the long run?
1 answer:
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Answer:
Heavenly Realty Journal entries can be found in the attached file
Explanation:
Dr Bank with $25,000
Cr. Capital Stock with $25,000
(being Faith Schultz transferred cash in exchange for Capital stock)
Dr. Rental of Office & equipment with $4,510
Cr. Bank with $4,510
(Being Rental costs for Office and Equipment)
Dr. Supplies with $1,330
Cr. Accounts Payable with $1,330
(Being cost of purchased supplies)
Dr. Supplies Expense with $740
Cr. Supplies with $740
(Being cost of supplies used)
Dr Accounts Payable with $490
Cr. Bank with $490
(being payment to Creditors)
Dr. Cash with $20,500
Cr. Sales commission with $20,500
(Being Sales Commission received)
Dr. Automobile Expense with $1,250
Dr. Miscellaneous Expense with $840
Cr. Bank with $2,090
(being payment for automobile expense, rental charges & Miscellaneous expense)
Dr Office Salaries with $2,620
Cr. Bank with $2,620
(Being Payment for Office Salaries)
Dr Dividend with $1,210
Cr Bank with $1,210
(Being payment of Dividend)
