Shown below are selected transactions of the architectural firm of Baxter, Claxter, and Stone, Inc. April 5 Prepared building plans for Spangler Construction Company. Sent Spangler an invoice for $900 requesting payment within 30 days. (The appropriate revenue account is entitled Drafting Fees Earned.)
May 17 Declared a cash dividend of $5,000. The dividend will not be paid until June 25.
May 29 Received a $2,000 bill from Bob Needham, CPA, for accounting services performed during May. Payment is due by June 10. (The appropriate expense account is entitled Professional Expenses.)
June 4 Received full payment from Spangler Construction Company for the invoice sent on April 5.
June 10 Paid Bob Needham, CPA, for the bill received on May 29.
June 25 Paid the cash dividend declared on May 17.
a. Prepare journal entries to record the transactions in the firm’s accounting records.
b. Identify any of the above transactions that will not result in a change in the company’s net income.

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.

In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000