EBook Transactions
On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during Apri
a. Opened a business bank account with a deposit of $31,000 in exchange for common stock.
b. Purchased office supplies on account, $3,280.
c. Received cash from fees earned for managing rental property, $9,090.
d. Paid rent on office and equipment for the month, $4,020.
e. Paid creditors on account, $1,490.
f. Billed customers for fees earned for managing rental property, $7,450.
g. Paid automobile expenses for month, $890, and miscellaneous expenses, $450.
h. Paid office salaries, $2,830.
i. Determined that the cost of supplies on hand was $1,940; therefore, the cost of supplies used was $1,340.
j. Paid dividends, $2,680.
Required:
1. Indicate the effect of each transaction and the balances after each transaction:
For those boxes in which no entry is required, leave the box blank.
For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
Assets
Liabilities
Accounts
Accounts
Common
Fees
Item Cash
Supplies
Dividends
Receivable
Payable
Stock
Earned
=
+
+
+
+
+
31,000 ✓
b.
3,280
3,280 ✓
Bal.
3,280
31,000 ✓
3,280

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Assume the total cost of a college education will be $250,000 when your child enters college in 17 years. you presently have $69,000 to invest. what annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

Consider the market for gas-powered small cars. assume gas-powered small cars are a normal good. for each of the following events, identify which of the determinants of demand or supply are affected. if demand is unaffected by this event because it creates only a supply change, select the “none” option under the “demand determinant” column. similarly, if supply is unaffected by this event because it creates only a demand change, select the “none” option under the “supply determinant” column. event demand determinant supply determinant people decide to have more children. the price of electric small cars falls. the discovery of a new source of iron ore lowers steel prices. an economic recession lowers people’s wealth. a number of major car dealers decide to switch from selling gas-powered cars to selling electric cars. show the effect of the following event on the market for gas-powered small cars: people decide to have more children for each of the four independent situations, prepare the journal entries to record the exchange on the books of each company.