Answer:
<u>Cowboy Law Firm</u>
<u>Income statement for the year ended December.</u>
$
Service revenue 8,900
Less Expenses :
Salaries expense (2,000)
Utilities expense (1,100)
Net Income / (Loss) 5,800
Explanation:
Income statements shows Revenues earned and Expenses incurred at the end of the trading period.
When the price at which items are sold exceeds what it costs businesses to produce those goods, there is a producer surplus. The region to the left of the quantity sold, below the price, and above the supply curve is known as the producer surplus.
Consumer surplus is represented by a horizontal line drawn between the y-axis and demand curve and is defined as the region below the downward-sloping demand curve, or the amount a consumer is prepared to spend for certain quantities of an item, and above the actual market price of the good.
Producer surplus decreases when the equilibrium price falls. The producer surplus is intimately correlated with changes in the demand curve. Producer surplus rises as demand rises. Reduced demand results in reduced producer surplus.
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Answer:
The standard of living from country to country is affected by their level of productivity. The more productive a Country is, the more goods and ser- vices they have available, etc.lnflation occurs when the government prints a surplus of money.There is a trade-off between inflation and unemployment. Increase in price can happen from higher demand, which in turn causes firms to higher more workers to produce more goods/services.
Answer:
$2,400
Explanation:
First divide $4,800 by 12 = $400 per month. Since the company paid the insurance premium on July 1, it must recognize $2,400 (= $400 x 6) as insurance expense for the July - December period. The remaining $2,400 must be recorded under the Prepaid Insurance account which is an asset account in the balance sheet.
Answer:
A) $7,000
Explanation:
Smith can deduct the $5,000 he donated to the church he attends. The art work donated to the local museum must be deducted at its basis, which is $2,000. Since he only purchased the painting 4 months before, the price increase will be considered a short term capital gain. Donated short term capital gain property must be deducted at basis.
The $1,000 he donated to the needy family is not deductible, since it wasn't a qualifying organization.
