The List of Accounts Presented Below Are from the Accounting

question 84

Essay

The list of accounts presented below are from the accounting records of Hoosier Momma Promotions on September 30,2012.Assume that each account balance is normal,and present them in proper trial balance format.
$\begin{array}{ll}\text { Cash } & \$ 4,200 \\\text { Short-term Investments } & 13,000 \\\text { Accounts Receivable } & 4,500 \\\text { Inventory } & 23,000 \\\text { Land } & 90,000 \\\text { Building } & 700,000 \\\text { Furniture } & 450,000 \\\text { Equipment } & 281,700 \\\text { AccountsPayable } & 7,200 \\\text { Salaries Payable } & 4,100 \\\text { Uneaned Revenue } & 17,000 \\\text { Interest Payable } & 2,000 \\\text { Notes Payable } & 70,000 \\\text { Common Stock } & 460,000 \\\text { Retained Eanings } & 977,000 \\\text { Sales } & 158,000 \\\text { Cost of GoodsSold } & 78,000 \\\text { Salaries Expense } & 24,000 \\\text { Rent Expense } & 6,000 \\\text { Insurance Expense } & 1,000 \\\text { Depreciation Expense } & 11,000 \\\text { Utility Expense } & 900 \\\text { Dividends } & 8,000\end{array}$

Understand how technological improvements affect supply, prices, and quantities in the market.

Define productive and allocative efficiency and differentiate between them.

Assess how changes in determinants of demand and supply, such as consumer income or resource prices, affect market equilibrium.

Explain the impact of changes in the prices of substitute goods on the demand for a product.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Materials

Raw inputs or components used in the manufacturing or production process to create a final product.

Equivalent Unit

A concept used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Weighted-Average Method

An approach to inventory valuation where the cost of goods sold and ending inventory figures are derived from the average cost of all units on sale during that interval.