Dolly Barton Began Barton Office Services in October and During

question 139

Essay

Dolly Barton began Barton Office Services in October and during the month completed the following transactions:
a.Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock.
b.Paid $500 cash for an insurance premium covering the next 12 months.
c.Completed a word processing assignment for a customer and collected $1,000 cash.
d.Paid $200 cash for office supplies.
e.Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions.Explanations are unnecessary.

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Definitions:

Price-Discriminated

A pricing strategy where a seller charges different prices for the same product or service to different buyers, based on factors like demand, market conditions, or buyer characteristics.

Pure Monopolist

A market scenario where a single firm is the sole provider of a product or service, facing no competition.

Economies of Scale

Financial advantages that firms enjoy as a result of the size of their operations, causing the per-unit expenditure to typically reduce as the operation's scale increases.

Barriers to Entry

Factors that prevent or hinder new competitors from easily entering into an industry or market, including high startup costs, stringent regulations, or strong brand loyalty among consumers.