Exhibit 15-2 Lawrence, Inc., Entered into a Subscription Contract with Several Subscribers

question 151

Multiple Choice

Exhibit 15-2
Lawrence, Inc., entered into a subscription contract with several subscribers that calls for the purchase of 2,000 shares of $5 par common stock for $15 a share. The contract calls for a 20% down payment and specifies that any amounts not paid within the contract period will be forfeited in full.
-Refer to Exhibit 15-2. Lawrence received final payment 80%) on 1,800 shares and issued those shares. Subscribers defaulted on 200 shares. The entries to record receipt of final payment and issuance of 1,800 shares would include a

• A) debit to Cash for $24,000.
• B) credit to Subscriptions Receivable: Common Stock for $24,000.
• C) debit to Common Stock Subscribed for $10,000.
• D) credit to Common Stock for $9,000.

Identify the derived demand for inputs based on output demand.

Understand the impact of product demand and price changes on the MRP curve.

Explain the implications of perfectly competitive labor and product markets on marginal revenue product and hiring decisions.

Assess how the concept of diminishing returns relates to the marginal product of labor and hiring decisions.

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Definitions:

Repressed Memories

These are memories that have been unconsciously blocked due to being associated with a high level of stress or trauma.

Early Childhood

A stage in human development that typically ranges from birth to 8 years old, characterized by rapid physical and cognitive development.

Hypnosis

A trance-like mental state induced by a person (a hypnotist) wherein subjects may experience heightened suggestibility and focus.

Suggestibility

The tendency of an individual to accept and act on suggestions by others, often studied in psychological contexts such as memory and hypnosis.