You are operating your accounting firm. your first client had the following transactions in april 20x7: borrowed $10,000 from the bank. purchased $2,250 of computer equipment for cash. paid $750 cash for this month’s rent. purchased $1,500 of office supplies on credit. it is expected that these supplies will last for 3 months. billed $500 to customers for services rendered during april. paid cash for the $1,500 balance owed to the vendor from transaction 4. collected $450 cash of the amount billed to the customer in transaction 5. sold one-half of the equipment purchased in transaction 2 for $1,125 in cash, with no gain or loss recognized on the sale. paid $1,000 of the principal from the loan in transaction 1, along with $50 in interest. required:
1. use the four steps in the accounting cycle to analyze business transactions, a) identifying transactions from source documents, b) analyzing transactions using the accounting equation, c) recording the journal entry and d) posting the entry to the ledger to complete the following:
2. prepare journal entries for each of the above transactions.

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

Data pertaining to the current position of forte company are as follows: cash $437,500 marketable securities 170,000 accounts and notes receivable (net) 320,000 inventories 700,000 prepaid expenses 42,000 accounts payable 240,000 notes payable (short-term) 250,000 accrued expenses 310,000 required: 1. compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. round ratios to one decimal place. 2. compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. consider each transaction separately and assume that only that transaction affects the data given. round to one decimal place. a. sold marketable securities at no gain or loss, 75,000. b. paid accounts payable, 135,000. c. purchased goods on account, 100,000. d. paid notes payable, 105,000. e. declared a cash dividend, 125,000. f. declared a common stock dividend on common stock, 45,000. g. borrowed cash from bank on a long-term note, 205,000. h. received cash on account, 130,000. i. issued additional shares of stock for cash, 635,000. j. paid cash for prepaid expenses, 15,000.

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.