Given the Following Account Balances for Felay's Second Hand Shop

question 69

Essay

Given the following account balances for Felay's Second Hand Shop on December 31,2012,prepare a trial balance.
$\begin{array}{ll}\text { Accounts Payable } & \$ 15,000 \\\text { Sales } & 93,000 \\\text { Merchandise Inventory } & 32,000 \\\text { Accum. Depreciation, Equipment } & 3,000 \\\text { Supplies } & 2,000 \\\text { Paid-in Capital } & 32,000 \\\text { Cost of Goods Sold } & 38,000 \\\text { Retained Earnings } & 20,000 \\\text { Wages Payable } & 8,000 \\\text { Cash } & 26,000 \\\text { Wage Expense } & 29,000 \\\text { Rent Expense } & 17,000 \\\text { Equipment } & 27,000\end{array}$

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Definitions:

Contestable Market

A market where entry and exit are costless enough that companies face potential competition, leading to competitive pricing and behavior as if the market were competitive, even if it’s dominated by a few firms.

Market Entry

The strategy or process by which a company enters a new market.

Market Exit

The process of a company stopping its business operations or leaving a market, often due to unprofitability or strategic realignment.

Concentrated Industry

An industry characterized by a few firms controlling a large market share, leading to reduced competition.