The Accounting Records of Mason Service Company Include the Following

question 167

Essay

The accounting records of Mason Service Company include the following selected,unadjusted balances at June 30: Accounts Receivable,$2,700; Office Supplies,$1,800; Prepaid Rent,$3,600; Equipment,$15,000; Accumulated Depreciation - Equipment,$1,800; Salaries Payable,$0; Unearned Revenue,$2,400; Office Supplies Expense,$2,800; Rent Expense,$0; Salaries Expense,$15,000; Service Revenue,$40,500.
The following data developed for adjusting entries are as follows:
a.Service revenue accrued,$1,400
b.Unearned Revenue that has been earned,$800
c.Office Supplies on hand,$700
d.Salaries owed to employees,$1,800
e.One month of prepaid rent has expired,$1,200
f.Depreciation on equipment,$1,500
Journalize the adjusting entries.Omit explanations.
$$\begin{array} { | l | l | l | l | } \hline & \text { Accounts } & \text { Debit } & \text { Credit } \\\hline \mathrm { a }& & & \\\hline \mathrm { b }& & & \\\hline\mathrm { c }& & & \\\hline \mathrm { d} & & & \\\hline \mathrm { e } & & & \\\hline\mathrm { f }& & & \\\hline\end{array}$$

Analyze the decision-making process of utility maximizers under different scenarios of risk and uncertainty.

Evaluate the benefits of purchasing insurance based on expected utility theory.

Distinguish between risk-averse, risk-neutral, and risk-loving behaviors.

Identify how insurance can redistribute risk and its impact on expected utility.

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