For Each of the Following Two Separate Situations,present Both the April

question 150

Essay

For each of the following two separate situations,present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses or receipt of the accrued revenue.
a.Nicolas Company has 5 employees,who earn a total of $2,900 in salaries each working day.They are paid on Monday for the five-day workweek ending on the previous Friday.Assume that fiscal year ended April 30,is a Thursday and all employees worked each day and will be paid salaries for five full days on the following Monday.
b.Services of $3,000 have been performed for Clevenger Company through April 30.The client will pay the entire amount of the contract when services are completed on May 23.
c.Paid the employees' salaries on May 4.
d.Received payment from Clevenger Company for services that are now completed on May 23.

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Definitions:

Price Competition

A type of rivalry between businesses where the main competitive factor is the price of goods or services.

Product Differentiation

The approach of making a product or service stand out from the competition to appeal more to a specific target audience.

Advertising Extent

The scope or range of advertising efforts, including the diversity of mediums used and the breadth of target audiences reached.

Oligopoly

describes a market structure in which a few firms dominate the industry, influencing price and production levels.