Economics of Enterprise Answers

An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs.

69.74. He transferred it to a suspense account and later discovered the following errors.
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.
b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.
d) Rs. 80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.

Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments

Hint: Total of suspense a/c = 78.74An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs.

69.74. He transferred it to a suspense account and later discovered the following errors.
a) Rs. 44.37 paid to Anand has been credited to his accou

KIM Inc. manufactures tables and chairs. Both products are manufactured in the same factory, with many common costs. Each product is treated as a separate division. Its design for both products is purposely simplistic: two-by-fours are glued together to form the tabletop/seat, and two-by-fours are nailed onto the tabletop/seat to serve as legs. The products have been described as “wobbly”, which adds to the charm of the product, according to the salespeople.

KIM Inc. uses a job-costing system that has two direct-cost categories, (direct material and direct labour), and one indirect cost pool, (manufacturing overhead), which is allocated using direct labour costs.

The following information is given for the chair division:
a) Raw Materials purchases in September equaled $125,000.
b) Balance in the Wages Payable account on September 30, 2013 is $21,000.
c) Balance in the MOH account on September 30, 2013 is a $121,000 debit.
d) Balance in the Finished Goods account on August 31, 2013 is $47,000.

Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow?

True or False
1. The water–diamond paradox has never been resolved.
2. Total utility will rise as long as marginal utility is rising.
3. The concept of consumer surplus was formulated by Alfred Marshall.
4. Total utility is at a maximum when marginal utility is zero.
5. We are maximizing our utility when the marginal utility of each good or service we purchase is equal to its price.
6. Utility is measured by a product's usefulness.
7. As increasing amounts of a product are consumed, marginal utility will decline.8. If Matthew Avischious were to purchase five drinks at $1 each, he would a consumer surplus.
9. State the general utility formula.
10. Define marginal utility
11. Explain the law of diminishing marginal utility.
12. What is a consumer surplus?

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Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables.

Whether a flat per-unit tax is imposed on producers or consumers is basically irrelevant?