Doug Allen Has Decided to Go into the Insect Extermination $\$ 35,000$

question 65

Essay

Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service.The following transactions were completed during the first month of operations,May,20--.
Enter the transactions in the T accounts,then enter the total of each column.If an account has entries on both sides,determine the balance and enter it on the side with the larger total.
1. Doug invested $\$ 35,000$ cash in the business.
2. Purchased extermination equipment for $\$ 17,000$ in cash.
3. Paid $\$ 700$ rent for garage and office quaters.
4. Purchased chemicals (expense) for $\$ 1,100$ from Low Glow Chem Co. on account.
5. Received $\$ 1,600$ revenue for extermination service.
6. Paid telephone bill, $\$ 120$
7. Paid assistant's salary, $\$ 700$ .
8. Earned $\$ 980$ revenue for extermination service, on account.
9. Paid electric bill, $\$ 230$ .
10. Paid for truck repairs (expense), $\$ 145$ .
11. Paid $\$ 600$ to Low Glow Chem Co., on account.
12. Paid $\$ 131$ for gas and oil for truck (expense).
13. Received $\$ 1,400$ revenue for extermination service.
14. Received $\$ 500$ for services previously earned on account in transaction (8).
15. Paid assistant's salary, $\$ 900$ . ​
$\begin{array}{lll}\text {Cash }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Accounts Receivable }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Extermination Equipment }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Accounts Payable }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {D. Allen, Capital}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Extermination Revenue}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text { Rent Expense}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text { Wages Expense}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Truck Expense }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Electricity Expense }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ ​
$\begin{array}{lll}\text {Telephone Expense }\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$ $\begin{array}{lll}\text { Chemical Expense}\\\hline\begin{array}{l|l}\text { }& \\\end{array}\end{array}$

Understand the use of nonfinancial measures in lean manufacturing.

Recognize the importance of quality control costs in a lean environment.

Identify the application of lean practices to service industries and administrative processes.

Understand the principles and objectives of lean manufacturing.

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Definitions:

Price-Taker Markets

Markets in which individual buyers or sellers have no influence over the price of a product, typically due to the product being a commodity with many competitors.

Low Entry Barriers

Conditions that make it easy for new competitors to enter a market, including minimal financial, regulatory, or technological requirements.

Homogeneous Product

A product that is identical in all aspects from all producers, making it indistinguishable among suppliers.

Labor Force Participation

The ratio of the labor force to the total working-age population, indicating the percentage of people working or seeking work.