Michael Company Has Just Completed Operations for the Year Ended

question 27

Essay

Michael Company has just completed operations for the year ended December 31,2018.This is the second year of operations for the sole proprietorship.The following data have been assembled for the business.
$$\begin{array} { | l | r |r | r | } \hline \text { Accounts Payable } & \$ 12,200 & \text { Office Expense } & \$ 6,500 \\\hline \text { Accounts Receivable } & 14,500 & \text { Rent Expense } & 9,600 \\\hline \text { Cash } & 8,200 & \text { Michael, Capital, Jan. 1,2018 } & 17,300 \\\hline \text { Michael, Withdrawals } & 13,500 & \text { Salaries Expense } & 36,000 \\\hline \text { Equipment } & 15,000 & \text { Service Revenue } & 84,000 \\\hline \text { Insurance Expense } & 4,000 & \text { Utilities Expense } & 6,200 \\\hline\end{array}$$ Prepare the income statement.Use a proper heading.

Grasp the foundational assumptions of the PPF model including fixed technology and resources.

Comprehend the definition and calculation of opportunity cost and its significance in economic decision-making.

Analyze the effects of trade and specialization on an economy's production and consumption possibilities.

Distinguish between absolute and comparative advantage in trade relationships.

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