Presented Below Are the Year-End Balances at October 31 of Max

question 66

Essay

Presented below are the year-end balances at October 31 of Max Missle Paintball Co. All accounts have normal balances.
$$\begin{array} { | l | r | } \hline \text { Accourts receivable } & \$ 5,000 \\\hline \text { Accourts payable } & 13,000 \\\hline \text { Accurnulated depreciation, equiprnent } & 15,000 \\\hline \text { Advertising expense } & 1,000 \\\hline \text { Cash } & 30,000 \\\hline \text { Depreciation experse, equiprnent } & 3,000 \\\hline \text { Insurance expense } & 1,000 \\\hline \text { frterest reverue } & 1,000 \\\hline \text { Laundry equipment } & 130,000 \\\hline \text { Notes payable } & 30,000 \\\hline \text { Max Missle, capital } & 47,500 \\\hline \text { Max Missle, withdrawals } & 5,000 \\\hline \text { Prepaid insurance } & 6,000 \\\hline \text { Salaries payable } & 2,000 \\\hline \text { Salary expense } & 4,000 \\\hline \text { Service revenue } & { 8 0 , 0 0 0 } \\\hline \text { Supplies } & 1,000 \\\hline \text { Supplies expense } & 100 \\\hline \text { Repair experse } & 500 \\\hline \text { Uneamed laurdry servicereveruse } & 100 \\\hline \text { Utilities experse } & 1,000 \\\hline\end{array}$$ Prepare the necessary closing entries at October 31.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market balance.

Mutually Beneficial Trades

Exchanges between parties that provide benefits or gains to all involved, enhancing their welfare or utility.

Well-Functioning Markets

Markets that efficiently allocate resources through the mechanism of supply and demand, leading to optimal outcomes for both buyers and sellers.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.