Hatcher Tool Service
the Following Transactions Occurred During June 2013 $\quad$

question 17

Essay

Hatcher Tool Service
The following transactions occurred during June 2013:
June 1 $\quad$ Purchased a service truck for $\$ 25,500$ , paying $\$ 5,500$ now and is suing a note payable for the balance; the note is due in monthly installments of $\$ 500$ plus $10 \%$ interest on the unpaid principal balance.

June 8 $\quad$ Performed services of $\$ 30,400$ . Received $\$ 6,400$ cash from customers and $\$ 24,000$ for customers billed for completed services.

June 22 $\quad$ Issued common stock in exchange for land having a fair value of $\$ 70,000$ .

June 30 $\quad$ Received an invoice for $\$ 2,400$ from the company's advertising agency for radio and television adswhich were run during the month; the invoice is che in 30 days. Refer to Hatcher Tool Service.Set up T-accounts and post each transaction to the T-accounts.

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they derive from it.

Surplus

An excess of production or supply over demand, often leading to lower prices.

Market Economy

An economic system where supply and demand from consumers and producers determine the production of goods and services.

Free Stuff

Items or services offered without charge, usually as part of a promotional strategy or as incentives.