Prepare a December 31 Balance Sheet in Proper Form for Cane

question 256

Essay

Prepare a December 31 balance sheet in proper form for Cane Property Management, Inc. using the following accounts and amounts: $\begin{array}{llcc} \text { Commissions earned..................} &\$40,000\\ \text {Accounts payable...................... } &3,500\\ \text { Accounts receivable................. } &5,000\\ \text {Stockholders' equity................. } &104,500\\ \text {Office equipment..................... } &10,000\\ \text { Advertising expense...............} &3,200\\ \text { Cash...................................... } &7,500\\ \text { Land...................................... } &35,000\\ \text { Note payable.......................... } &50,000\\ \text {Office supplies......................... } &1,500\\ \text { Salaries expense...................... } &12,000\\ \text { Salaries payable...................... } &1,000\\ \text { Building.................................. } &100,000\\\end{array}$

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Definitions:

Elasticity

A determination of how the need or provision of a product varies in reaction to changes in its price.

Demand Curve

A graph showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase, ceteris paribus.

Herfindahl Indexes

A measure used to calculate the level of concentration in a market, indicating the competitive environment and potential for monopolistic power.

Four-Firm Concentration Ratio

A measure that indicates the total market share held by the largest four firms in an industry, used to assess the level of competition.