Issued 150,000 shares of common stock in exchange for $750,000 cash. Purchased office equipment at a cost of $121,250. $48,500 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $300,000. The company uses the perpetual inventory system. Credit sales for the month totaled $510,000. The cost of the goods sold was $255,000. Paid $7,000 in rent on the store building for the month of June. Paid $3,600 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021. Paid $216,750 on account for the merchandise purchased in 3. Collected $102,000 from customers on account. Paid shareholders a cash dividend of $7,500. Recorded depreciation expense of $2,425 for the month on the office equipment. Recorded the amount of prepaid insurance that expired for the month.

1. Recorded depreciation expense:

Debit Depreciation expense $2,425

Credit Accumulated depreciation account $2,425

2. Recorded the amount of prepaid insurance that expired for the month

Debit Insurance Expense $300

Credits Prepaid Insurance $300

Explanation:

1. Recorded depreciation expense:

Debit Depreciation expense $2,425

Credit Accumulated depreciation account $2,425

2. Recorded the amount of prepaid insurance that expired for the month

The company paid $3,600 to an insurance company for fire and liability insurance for a one-year period, beginning June 1, 2021.

Insurance Expense for a month (at the end of Jun, 2021) = $3,600/12 = $300

The entry to record the amount of prepaid insurance that expired for the month:

Debit Insurance Expense $300

Credits Prepaid Insurance $300

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.