Economics Answers

You have the following information for MrVuong’s store for fiscal year 20X0:

1^stSigned a 6-months rental contract for the store ($500 per month and pay full in advance) and bought $500 of supplies (cash paid). 3^rdPurchaseda vehicle at cost of $8,000 on credit.

5^th Purchasedgoods at cost of $5,000 on credit.

6^th Sold goods $11,000 and received cash (the mount of good originally costs $6,000).

8^th Borrowed $9,000 cash from bank.

16^thPaid for the vehicle by cash ($5,000).

17^th Invested more $5,000 in cash to the business.

 26^thPurchased goods at cost of $4,000 by cash.

27^stSold goods (which originally cost $3,000) @$1,500 on credit.

31^st Vehicle’s depreciation was estimated $80.

Additional information:Beginning balances of the month were:

Cash $10.000; Inventory $3.000; Trade Payable $3.000; Bank Loan Payable $4.000; Vuong’s Equity $6.000

The amount of supplies still on hand at the end of the month was valued $200

Requirement:Journalise the transactions in January

Discuss each of the following statements from the standpoints of equity and efficiency.

“Everyone in society should be guaranteed the best health care possible.”

“When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”

You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending the $100 now?

The first principle of economics discussed in Chapter 1 is that people face tradeoffs. Use a production possibilities frontier to illustrate society’s tradeoff between a clean environment and high incomes. What do you suppose determines the shape and position of the frontier? Show what happens to the frontier if engineers develop an automobile engine with almost no emissions.

You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose that you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain.

What is the difference between a positive and a normative statement? Give an example of each.

List and discuss the top three expenditures in state budgets overall and substantiate your selection. (30)

Some financial theories consider the variance of the distribution of expected rates of return to be a good measure of uncertainty. Discuss the reasoning behind this measure of risk and it's purpose.

Some financial theories consider the variance of the distribution of expected rates of return to be a good measure of uncertainty. Discuss the reasoning behind this measure of risk and it's purpose.

Q1.A Bosh Company’s total assets are $155,000 and its total liabilities are $85,000. What is the

amount of the Bosh company’s retained earnings if its capital stock amounts $50,000? 3

Q2. Wiley Company had total revenue of $300,000 for a recent month. During the month the

company incurred operating expenses of $205,000 and purchased land for $55,000. Compute the

amount of Wiley’s net income for the month.