Prepare a December 31 Balance Sheet in Proper Form for Surety

question 227

Essay

Prepare a December 31 balance sheet in proper form for Surety Insurance from the following items and amounts:
$\begin{array}{|l|r|}\hline \text { Commissions earned } & \$ 40,000 \\\hline \text { Accounts payable } & 3,500 \\\hline \text { Accounts receivable } & 5,000 \\\hline \text { Office equipment } & 10,000 \\\hline \text { Advertising expense } & 3,200 \\\hline \text { Cash } & 7,500 \\\hline \text { Land } & 35,000 \\\hline \text { Note payable } & 50,000 \\\hline \text { Office supplies } & 500 \\\hline \text { Salaries expense } & 12,000 \\\hline \text { Salaries payable } & 1,000 \\\hline \text { Building } & 100,000 \\\hline \text { Common stock } & 40,000 \\\hline \text { Retained earnings } & 63,500\\\hline \end{array}$

Recognize the role of economic profits and losses in a perfect competitive market structure.

Comprehend the significance of standardized products in perfect competition.

Analyze the demand curve faced by perfectly competitive firms.

Describe the impact of market entry and exit on market equilibrium in perfect competition.

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Definitions:

Energizer Bunny

A marketing mascot for Energizer batteries, symbolizing longevity and perseverance, known for "going and going".

Brand Name

The name given to a product or service by the company that owns it, used as an identification and marketing tool.

Diversification

A strategy to reduce risk by investing in a variety of assets or undertaking different types of business activities.

T-shirts

Casual garments made of fabric, typically with short sleeves and a round neckline, worn on the torso.