Determine the Accounts and Amounts to Be Debited and Credited

question 56

Essay

Determine the accounts and amounts to be debited and credited for the following transactions for Madison's Clock Repair.
A. Purchased new equipment for $1,700 by issuing a check for $1,000 as a down payment with the balance due in 30 days.
B. Issued checks for $2,400 to pay the employees their monthly salaries.
C. Issued a check for $700 to pay a creditor on account.
D. Purchased supplies for $200 cash.
E. Provided services for $6,800 on credit.
F. Returned damaged supplies and received a $50 cash refund.
G. Issued a check for $100 to pay the monthly telephone bill.

---

Definitions:

Near-Monopoly

A market structure where one firm predominates but does not solely control the market, allowing for minor competition.

Price Leadership

A situation where one company in an industry sets the price for its products, and other companies in the industry follow suit, often due to the dominance of the leading company.

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two individuals might not cooperate, even if it appears that it is in their best interest to do so.

Collusive Agreements

Secret or illegal cooperation or conspiracy, especially between firms, to deceive or defraud others, restrict competition, or fix prices.