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Dec. 1 Mr. John transferred cash from his personal account to the business to be used in
the business, Birr 150,000.
“ 1 Paid five months’ rent in advance, Birr 30,000
“ 1 Paid annual Insurance premium of Birr 7,200
“ 11 Purchased a truck for Birr 110,000 by paying Birr 60,000 Cash and giving a
notes payable for the difference.
“ 12 Purchased equipment on account, Birr 11,000
“ 13 Purchased supplies on account Birr 2400.
“ 14 Paid insurance premiums of Birr 8100
“ 15 Received cash for services completed Birr 36,000.
“ 18 Paid salaries of Birr 9000.
“ 21 Paid its liabilities for the purchase of equipment made on December 12
“ 24 Provided Service on account, Birr 52,000
“ 27 Paid utilities expense Birr 12,500.
“ 27 Paid miscellaneous expenses Birr 1,200.
“ 28 Received cash from customers on account birr 24,000
“ 30 Paid salaries to employees Birr 5,000
“ 30. The owner withdrew Birr 2,000 for personal use.
Required:
a) Record the above transactions in General Journal (Journalize the above transactions)
Will the envelope curve be tangential to the bottom of each of the short-run average cost curves? Explain why it should or should not be.
Explain why it is not possible for a monopoly firm to maximize its profits by charging a price in the price region where demand is inelastic, even though there are no direct substitutes for its product. Also explain how a monopoly will be able to charge a higher price than a firm producing the good under perfect, oligopolistic, or monopolistic competition
Consider supply in the long run. Assume that a specific tax is imposed on a good that was previously untaxed. How will the incidence of this tax change as time passes?
Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply.
is it true of false that consumers tend to buy more of the good or service whose price has risen.
During the covid 19 pandemic, the ayurvedic medicines have an inelastic demand and electronic devices have an elastic demand. Imagine that technological development doubles the supply of both the products(i.e quantity supplied at each price is twice as it was earlier). (i) what will be the equilibrium price and quantity in each market? (Ii) Which product experiences a larger change in price and which product experiences a larger change in quantity?
Show diagrammatically the impact on the firm's profit if in short run demand or the product reduce
suppose you are a monopolist and find that the demand elasticity of your product is different in two market what would be your pricing strategy
1. Choose a Company (Example: Visa, Morrisons)
2. Choose 6 Ratios you want to analyze company’s Performance
3. Prepare their formulas
4. Gather required data from financial statements 5. Apply Formulas on Excel
6. Comment on the Results
7. Draw a conclusion if company is sustainable
