Based on the Following Trial Balance for Sal's Beauty Shop

question 146

Essay

Based on the following trial balance for Sal's Beauty Shop, prepare an income statement, statement of retained earnings and a balance sheet.Sal made no additional investments in the company during the year.
$\begin{array}{c} \text {SAL'S BEAUTY SHOP }\\ \text { Trial Balance }\\ \text {December 31 }\\\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 6,500 & \\\hline \text { Accounts receivable } & 475 & \\\hline \text { Beauty supplies } & 2,500 & \\\hline \text { Beauty shop equipment } & 17,000 & \\\hline \text { Accounts payable } & & \$ 745 \\\hline \text { Common stock } & & 10,000 \\\hline \text { Retained earnings } & & 11,155 \\\hline \text { Dividends } & 36,000 & \\\hline \text { Revenue earned } & & 72,000 \\\hline \text { Beauty supplies expense } & 3,425 & \\\hline \text { Rent expense } & 6,000 & \\\hline \text { Wages expense } & 22,000 & \\\hline \text { Totals } & \$ 93,900 & \$ 93,900 \\\hline\end{array}\end{array}$

Identify the elements required for a valid gift transaction, including delivery and acceptance.

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Differentiate between types of property insurance and understand the basics of insurance policy terms.

Comprehend the concept of accession and how it affects ownership rights.

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Definitions:

Monopoly

A market condition where a single company or entity exclusively controls a particular commodity or service, often leading to less competition and higher prices.

Public Regulation

The imposition of rules by the government aimed at influencing or controlling certain activities within the economy or society for the general welfare.

Natural Monopolists

Natural monopolists are entities that can provide a good or service at a lower cost than any potential competitor due to economies of scale, making a single provider more efficient than multiple competing ones.

Antitrust Suit

A legal action taken against companies to stop practices that restrain trade, maintain monopolies, or otherwise violate antitrust laws.