Tractor Corporation Was Just Formed

question 22

Essay

Tractor Corporation was just formed. The following accounts with code letters are given below.
Required:
Indicate the appropriate journal entry for each transaction by entering the code letters and the correct amounts (do not use dollar signs). The transactions, including the example, are not interrelated unless otherwise stated.

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Definitions:

Equilibrium Price

The cost at which the volume of goods available equals the volume sought by consumers.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price.

Consumer Surplus

The divergence between the total price consumers are prepared to pay for a good or service and the actual price paid.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount received by them when they make the sale.