Economics Answers

What is Accounting? List any five users of financial info

-   Show the transaction will be entered in the General Journal of Koo Traders.

 - You must explain WHY this is an error.

 -Show how the transaction will be entered in the General ledger by using T-accounts.

transactions are as follows :

1) Depreciation on Vehicles is calculated at 20% on the diminishing balance method. The bookkeeper calculated the depreciation on vehicles at 25% on the Cost price method and entered the amount in the books of the business. No vehicles were sold or purchased during the financial year ended on 28 February 2021.

• vehicles ( 28 February 2021)= 880 000
• Accumulated depreciation ( 1 march 2020) = 155 200

3)An invoice received from Kamba Suppliers for the trading stock was recorded as R880 by the bookkeeper of Koo Traders. However, the statement received from Kamba

     Suppliers showed the correct amount outstanding as R8 800. Correct the error.

1. The Swift Company presented the balances of each income and expense account and you are tasked to make its expanded income statement for the year ended 2020.

 2. Always apply the income tax expense as 25% of operating profit. 

Gross Sales = ₱ 3,822,300 

Sales Returns= ₱ 219,700 

Gross Purchases = ₱ 1,000,000 

Purchase Discounts = ₱ 180,000 

Beginning Inventories = ₱ 920,500

 Ending Inventories = ₱ 450,800

 Distribution Expenses = ₱ 760,200

 Administrative Expenses = ₱ 440,900 

Other Comprehensive Income = ₱ 210,000

Suppose the government implements a price ceiling of $20/unit in this market.  Is this price ceiling binding on the market?

QS = QD

100 - 2(P - 20) = -20 + P

160 = 4P

P = 40

Therefore QD = -20 + 2(40) = 60 units

1. What is the value of the economic surplus that would be generated in the original equilibrium? Is there a deadweight loss due to the price ceiling policy, and if so, what is its value? Briefly explain. 

The effects on the equilibrium price and quantity of increase in income using the determinates that affect demand and supply

The Pinewood Furniture Company produces chairs and tables from two resources: labor and wood.

The company has 145 hours of labor and 100 board-ft. of wood available each day. Demand for tables is limited to 8 per day.  Each chair requires 3 hours of labor and 4 board-ft. of wood, whereas a table requires 22 hours of labor and 9 board-ft. of wood. The profit derived from each chair is $100 and from each table is $500. The company wants to determine the number of chairs and tables to produce each day in order to maximize profit.

The correct linear programming model formulation of this problem is:

James Walker allocates his budget of $ 24 per week among three goods, A, B and C. Use the following tables of quantities (Q) and total utilities (TU) to answer the questions below:

QA TUA QS TUS QC TUC

1 50 1 75 1 25

2 90 2 135 2 45

3 120 3 175 3 60

4 140 4 205 4 70

5 155 5 225 5 77

i. If the price of A is $2, the price of B is $3, and the price of C is $ 1, how much of each does James Walker purchase in equilibrium?

ii. If the price of A rises to $ 4 while other prices and James Walker budget remain constant, how much of each does he purchase in equilibrium?

iii. Use the information from part (i) and part (ii) to draw the demand curve for good A. Be sure to indicate the quantity demanded for each point on the curve.

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