Assume that Diego has $400 per month to divide between playing paintball and playing golf. Assume that playing paintball costs $40 and playing golf costs $20. Suppose Diego plays paintball six times per month and plays golf eight times per month. If paintball is on the y-axis and golf is on the x-axis then Diego's budget constraint has a y-intercept of nothing and an x-intercept of nothing. Assume that Diego has some unexpected expenses one month and can only spend $320 that month. Then Diego's new budget constraint has a y-intercept of nothing and an x-intercept of nothing. Diego cannot can afford two games of paintball and twelve rounds of golf since this bundle is on inside outside his budget constraint. Paintball is a normal an inferior good and golf is an inferior a normal good. Assume Diego has his original $400 per month to spend and the price of paintball is still $40, but the price of golf doubles to $40. Diego's new budget constraint has a y-intercept of nothing and an x-intercept of nothing.

During the first month of operations, martinson services, inc., completed the following transactions: jan 2 martinson services received $65,000 cash and issued common stock to the stockholders. 3 purchased supplies, $1,000, and equipment, $12,000, on account. 4 performed services for a customer and received cash, $5,500. 7 paid cash to acquire land, $39,000. 11 performed services for a customer and billed the customer, $4,100. martinson expects to collect within one month 16 paid for the equipment purchased january 3 on account. 17 paid for newspaper advertising, $600. 18 received partial payment from customer on account, $2,000. 22 paid the water and electricity bills, $430. 29 received $2,600 cash for servicing the heating unit of a customer. 31 paid employee salary, $2,900. 31 declared and paid dividends of $1,800. requirements 1. record each transaction in the journal. key each transaction by date. explanations are not required. 2. post the transactions to the t-accounts, using transaction dates as posting references. label the ending balance of each account bal, as shown in the chapter. 3. prepare the trial balance of martinson services, inc., at january 31 of the current year. 4. mark martinson, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether january was profitable (and by how much)?