The Consulting Firm of Martin and Associates Uses the Accounts

question 12

Essay

The consulting firm of Martin and Associates uses the accounts listed below. On a separate sheet of paper, set up T accounts for each of the accounts listed and record the balances on the normal balance side of the accounts. $\begin{array}{lrll}\text { Cash } & \$ 5,800 & \text { Fees Income } & -0- \\\text { Accounts Receivable } & 9,500 & \text { Rent Expense } & -0- \\\text { Office Equipment } & 8,900 & \text { Utilities Expense } & -0- \\\text { Accounts Payable } & 5,000 & \text { Salaries Expense } & -0- \\\text { Joan Martin, Capital } & 19,200 & & \\\text { Joan Martin, Drawing } & -0- & &\end{array}$ The firm has the following transactions during the month of December 2013. Record the effects of these transactions in the T accounts.
a. Paid $1,300 for one month's rent
b. Collected $5,600 in cash from credit customers
c. Performed services for $7,500 in cash
d. Paid $4,800 for salaries
e. Issued a check for $3,400 to a creditor
f. Performed services for $10,200 on credit
g. Purchased office equipment for $1,800 on credit
h. The owner withdrew $3,500 in cash for personal expenses
i. Issued a check for $650 to pay the monthly utility bill
Determine the account balances after the transactions have been recorded. Prepare a trial balance as of December 31, 2013.

Analyze the effect of supply elasticity and demand changes on economic rent.

Explore the criticism and support for land nationalization and private ownership.

Understand the concept of interest and how it functions as the price paid for the use of money.

Grasp the factors that influence interest rates, including risk, loan size, and duration.

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Definitions:

Property

Physical or intangible assets owned by an individual or business, including land, buildings, and intellectual property.

Residential Rental Property

Real estate property that is used for housing tenants and includes houses, apartments, and townhouses.

Nonresidential Real Property

Property used for business purposes, excluding those properties used for living accommodations.