Answer:
Renfro Corporation
The bond's yield to maturity is:
= 0.067
The bond's current yield is:
= 0.073
The bond's capital gains yield is:
= -0.006
Explanation:
a) Data and Calculations:
Maturity period of bonds = 10 years
Face value of the bonds = $1,000
Coupon rate = 8% paid semiannually
Price of the bonds = $1,100
Yield to maturity (YTM) = (C + {(FV - PV)/t})/{(FV + PV)/2}
where C = Coupon interest = $80 ($1,000 * 8%)
FV = Face value of the bonds
PV = Present value or price of the bonds
t = number of years
YTM = ($80 + {($1,000 - $1,100)/10})/{($1,000 + $1,100)/2}
= ($80 + {(-$100)/10})/{($2,100)/2}
= ($80 + $-10/$1,050
= $70/$1,050 = 0.06667
= 0.067
Current Yield = Annual interest/Price
= $80/$1,100
= 0.073
Capital gains yield = YTM - Current Yield
= 0.067 - 0.073
= -0.006
g Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and Allowances 26,000 Sales Discounts 12,000 Sales 300,000 Cost of Goods Sold 158,000 Gross profit would be
Answer:
$104,000
Explanation:
Calculation to determine what Gross profit would be
Using this formula
Gross profit=Sales -Cost of Goods Sold -Sales Returns and Allowances-Sales Discounts
Let plug in the formula
Gross profit=$300,000-$158,000-$26,000- $12,000
Gross profit=$104,000
Therefore Gross profit would be $104,000
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $102.335 million Cash of $8.040 million Total Assets of $165.097 million Retained Earnings of $35.132 million. What was the Digby Corporation's common stock
Answer:
$27.63 million
Explanation:
Total equity = Common stock + Retained earnings
Common stock = Total equity - Retained earnings
Common stock = (Total assets - Total liabilities) - Retained earnings
Common stock = ($165.097 million - $102.335 million) - $35.132 million
Common stock = $62.762 million - $35.132 million
Common stock = $27.63 million
Could anyone help with this question?
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.
a. In a small town, there are two providers of broadband Internet access: a cable company and the phone company. The Internet access offered by both providers is of the same speed.
b. The government has granted a patent to a pharmaceutical company for an experimental AIDS drug. That company is the only firm permitted to sell the drug.
c. Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks.
d. In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than that of its competitors.
Answer:
1. not a competitive market
2. not a competitive market
3. competitive market
4. not a perfectly competitive market
Explanation:
To answer this question, i will first start by explaining what a competitive market is and the assumption of a perfectly competitive market as well
A competitive market is a market that has many producers and buyers of a particular product. The producers are usually in a competition to meet up with the needs of the buyers.
some assumptions of the market:
large sellers/producersidentical or homogenous goodsfree entryno discriminationperfect knowledgea. in this question this is not a competitive market. the reason is simple. It says that there are only two providers of internet. So there are no enough producers or sellers
b. The government has limited entry into this market by giving patent to only one pharmaceutical company.
c. yes this market is competitive since there are many producers of the product and the consumers regard the products as identical or homogenous. this meets with all of the assumptions of a perfectly competitive market.
d. the product here is not homogenous or identical as this is not a perfectly competitive market since buyers would prefer to buy the coffee that tastes better and leave that of the competitors
thank!
A manufacturer produces two types of computer software, Word processing (W) and Spreadsheet (S), which is offered to two different retail outlets (#1 and #2). The following table shows the maximum price each retail outlet is willing to pay for each individual software product.
Product W Product S
Retail #1 $170 $105
Retail #2 $95 $135
What is the optimal pricing strategy that will maximize revenue for the manufacturer, given the maximum the retail outlets are willing to pay?
a. Bundle both products (W and S) and sell them at $275.
b. Price product W at $95 and Product S at $105.
c. Price product W at $170 and Product S at $170.
d. Price product W at $170 and Product S at $135.
e. Bundle both products (W and S) and sell them at $230.
Answer:
e. Bundle both products (W and S) and sell them at $230.
Explanation:
Calculation to determine the optimal pricing strategy that will maximize revenue for the manufacturer
Using this formula
Optimal pricing=Retail #2 Product W+ Retail #2 Product S
Let plug in the formula
Optimal pricing=$95+$135
Optimal pricing=$230
Therefore based on the above calculation the OPTIMAL PRICING STRATEGY that will MAXIMIZE REVENUE for the manufacturer, given the MAXIMUM the retail outlets are willing to pay will be to BUNDLE BOTH PRODUCTS (W and S) AND SELL THEM AT $230.
Which economic concept helps explain the changing demand for jewelry?
A. fungibility
b. non-excludability
c. substitution
d. elasticity
Answer:
A.fungibility is a economic concept which helps explain the changing demand for jewelry.
As
Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets .
IPS Corp. will upgrade its package-labeling machinery. It costs $850,000 to buy the machinery and have it installed. Operation and maintenance costs, which are $11,000 per year for the first 3 years, increase by $1000 per year for the machine's 10-year life. The machinery has a salvage value of 12% of its initial cost. Interest is 25%. What is the future worth of cost of the machinery
Answer:
The future worth of cost of the machinery is –$8,227,391.25.
Explanation:
The value of an amount of money at a particular interest rate at some point in the future is referred to as future worth.
Note: See the attached excel file for the calculation of the future worth of cost of the machinery.
In the attached excel file, the discounting factor for each year is calculated as follows:
Discounting Factor = (100% + Interest)^Remaining years ………………. (1)
Where:
Interest = 25%
Remaining years = 10 – Number of current year
In the attached excel file, we have:
Total future worth = (8,227,391.25) = –$8,227,391.25
Therefore, the future worth of cost of the machinery is –$8,227,391.25.
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 55,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $302,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $321,300 and its actual total direct labor was 58,850 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct materials $ 50,850 Direct labor cost $ 27,300 Direct labor hours worked 220 Compute the total job cost for the Xavier Company engagement.
Answer:
Tech Solutions
1. The predetermined overhead rate is:
= $6
2. The total job cost for the Xavier Company engagement is:
= $79,470
Explanation:
a) Data and Calculations:
Estimated direct labor-hours for the year = 55,000
Estimated fixed overhead cost = $302,500
Estimated variable overhead cost ($0.50 per DLH) = $27,500
Total overhead costs = $330,000 ($27,500 + $302,500)
Actual overhead cost for the year = $321,300
Actual total direct labor-hours = 58,850
Predetermined overhead rate = $6 ($330,000/55,000)
Xavier Company's Job:
Direct materials $ 50,850
Direct labor cost $ 27,300
Direct labor hours worked 220
Applied overhead = $1,320 ($6 * 220)
Total job cost = $79,470
= Variable overhead rate + fixed overhead rate
= $0.50 + ($302,500 ÷ 55,000 direct labor hours)
= $0.50 + $5.50
= $6.00
2. The total cost should be
= Direct material cost + direct labor cost + overhead cost
= $50,850 + $27,300 + ($6 × 220)
= $50,850 + $27,300 + $1,320
= $79,470
Therefore we can conclude that
The predetermined overhead rate is $6.00.The total job cost is $79,470.Learn more about the total cost here: brainly.com/question/13910351
Using information that was accurate in the year 2012, categorize each member state according to whether it was a member state using the euro, a member state not using the euro, or not a member state.
You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop.
European Union member state using the euro
European Union member state not using the euro
Not a member of the European Union
Answer:
European Union member state using the euro.
SlovakiaFrance ItalyAll three of the above nations are members of the EU using the Euro which enables easier transactions with the rest of the Union. France still prints and manages their old currency, the Franc for its previous colonies in West Africa.
European Union member state not using the Euro.
SwedenUnited KingdomHungaryThese three countries still use their own currency with Sweden using the Krona, the British still using the Pound and the Hungarians still using the Forint. The British were still members of the EU in 2012 but have since left the Union.
Not a member of the European Union
UkraineNorwayThese two nations are not part of the EU but have very significant ties to the European Union's markets.
Mendez Company is considering a capital project that costs $16,000. The project will deliver the following cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 $8,000 $6,000 $5,000 $6,000 $5,000 Using the incremental approach, the payback period for the investment is:
Answer:
2.4 years
Explanation:
Years Cash Cumulative Cashflow
1 8000 8000
2 6000 14000
3 5000 19000
4 4000 25000
5 5000 30000
30000
Payback period = 2 years + (16,000 - 14,000) / 5,000
Payback period = 2 years + 0.4 years
Payback period = 2.4 years
In 20X4, Bosh Corporation had income of $60,000 using absorption costing. Beginning and ending inventories were 13,000 and 8,000 units, respectively. The fixed manufacturing overhead cost was $4.00 per unit. What was the net income using direct/variable costing
Answer:
Net income under variable costing $80,000
Explanation:
The computation of the net income using direct/variable costing is shown below:
Net income under absorption costing $60,000
Add fixed cost under applied $20,000
Net income under variable costing $80,000
Working
Beginning inventory 13000
Less ending inventory -8000
Decrease in inventory 5000
Now under applied inventory $20,000
Suppose that we want to evaluate the effect of several variables onannual saving and that we have a panel data set on individuals collected in January1990 and January 1992. If we include a year dummy variable for 1992 and use firstdifferencing, can we also include age in the original model? Explain.
Answer:
Following are the responses to the given question:
Explanation:
Note that others will therefore increase his age by two percent from 2009 to 1992.
[tex]\Delta age_{i}=2 \ \ \ where \ \ i =1,2,....,n[/tex]
And if the trend is running:
[tex]\Delta saving_{i}=\beta _{0}+\beta _{1}\Delta age_{i}+...+u_{i}[/tex]
We're breaking MLR.3 as [tex]\Delta agei[/tex] it's the same for all -> No different from a permanent designer cannot immediately distinguish the influence of age from the aggregate time effect because age changes per person by the same amount.
Suppose independent truckers operate in a perfectly competitive constant cost industry. If these firms are earning positive economic profits, what happens in the long run to the following: The price of trucking services
Answer:
The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
ABC Company operates two divisions with the following operating information for the month of May:
Division 1: sales, $128,000; operating income, $39,680; operating assets, $320,000.
Division 2: sales, $84,000; operating income, $42,336; operating assets, $420,000.
ABC Company expects a minimum return of 10% should be earned from all investments.
Required:
Prepare ABC Company’s ROI analysis using the DuPont model for each division.
The net income reported on the income statement of Cutler Co. was $2,460,000. There were 50,000 shares of $18 par common stock and 20,000 shares of $5 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $300,000 after applicable income tax.
a. Determine the per-share figure for common stock for income before discontinued operations. Round your answer to the nearest cent.
$ per share
b. Determine the per-share figure for common stock for net income. Round your answer to the nearest cent.
$ per share
Answer and Explanation:
The computation is shown below:
a. The earning per share is
= (PAT - income tax discontinued operations - Preference dividend) ÷ number of common stock
= ($2,460,000 - $300,000 - (20,000 × $5)) ÷ (50,000 shares)
= $41.2 per share
b. The earning per share is
= (PAT - Preference dividend) ÷ number of common stock
= ($2,460,000 - (20,000 × $5)) ÷ (50,000 shares)
= $47.2 per share
Suppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 400 million pounds per year. Suppose that WebMD claims that a protein found in turkey will increase your expected lifespan by 2 years. WebMD's claim will cause consumers to demand _____________turkey at every price.
Answer:
The "WebMD's claim will cause consumers to demand ______more_______turkey at every price."
Explanation:
Consumers will tend to demand more turkey in order to increase their expected lifespan by 2 years by consuming more of the protein found in turkey as claimed by WebMD. This implies that there will a new equilibrium as the old equilibrium shifts outward to match the increased demand by consumers of turkey. This claim may trigger demand and supply to exceed the annual 400 million pounds equilibrium at $5 per pound.
Gilmore, Inc., had equity of $135,000 at the beginning of the year. At the end of the year, the company had total assets of $290,000. During the year, the company sold no new equity. Net income for the year was $29,000 and dividends were $3,400. a. What is the sustainable growth rate for the company
Answer:
A. 18.96%
B. 18.96%
C. 15.94%
Explanation:
A. Calculation to determine the sustainable growth rate for the company
First step is to calculate the Ending equity
Ending equity = 135,000 + 29,000 -3,400
Ending equity=$160,600.
Second step is to calculate the return on equity
Return on equity =29,000/160,600
Return on equity=0.18057285
Third step is to calculate the retention ratio
Retention ratio =(Net income- dividends) / Net income
Retention ratio= (29,000-3400) / 29,000
Retention ratio=25,600 /29,000
Retention ratio=0.88275862.
Now let calculate the Sustainable growth rate using this formula
Sustainable growth rate = (Return on equity *Retention ratio) / [1-(Return on equity*retention ratio)]
Let plug in the formula
Sustainable growth rate=(0.18057285*0.88275862)/ [1-(0.18057285*0.88275862)]
Sustainable growth rate=0.15940224/ [1-0.15940224]
Sustainable growth rate=0.1896*100
Sustainable growth rate=18.96%.
b. Calculation to determine the sustainable growth rate if you use the formula ROE band beginning of period equity
First step is to calculate the return on equity using beginning of the period equity
Return on equity using beginning of the period equity=$29,000 /135,000
Return on equity using beginning of the period equity=0.21481481.
Now let calculate the sustainable growth rate if you use the formula ROE band beginning of period equity
roe * b = 0.21481481*0.88275862
ROE band=0.1896*100
ROE band=18.96%.
c.return on equity using ending of period equity = 29,000/160,600
=>0.18057285
roe*b=>0.18057285*0.88275862
=>0.1594
=>15.94%.
Five welding jobs are waiting to be processed. Their processing times and due dates are given below. Using the critical ratio dispatching rule, in which order should the jobs be processed
Job Processing Time (days) Job due date (days)
A 4 7
B 2 4
C 8 11
D 3 5
E 5 11
Answer:
Order of processing the jobs:
Job Critical Ratio
C 1.375
D 1.667
A 1.75
B 2.0
E 2.2
Explanation:
a) Data and Calculations:
Job Processing Job due Critical
Time (days) date (days) Ratio
A 4 7 1.75 (7/4)
B 2 4 2.0 (4/2)
C 8 11 1.375 (11/8)
D 3 5 1.667 (5/3)
E 5 11 2.2 (11/5)
b) The critical ratio (CR) dispatching indicates the priority sequencing that should be adopted to process work at a work center. The first process is to create the CR priority index number, which is obtained from the formula of due days divided by the processing days. Therefore, the job with the lowest CR is scheduled first.
Everything else equal, if the United States runs a large foreign trade deficit, the financing of the deficit will: a. increase government subsidies. b. increase interest rates. c. decrease sales of Treasury securities. d. increase the money supply. e. decrease tax revenue.
Answer: decrease tax revenue
Explanation:
A trade deficit occurs when the import of a country's is more than the export of the country for a given period of time period. The main cause is when there's an imbalance between the savings of a country and the investment rates.
In this case, financing the deficit will lead to the reduction in the tax revenue. When part of the tax revenue gotten from economic agents are used in the finance of the deficit, there'll be a reduction in the tax revenue.
Hyundai's Assurance program empathized with American consumers during uncertain financial times, helping to create a psychological and emotional:_______
a. brand association.
b. differentiation strategy.
c. consumer response.
d. marketing campaign.
Suppose banks increase excess reserves by $ 471845 . If the reserve ratio is 12 percent, what is the maximum increase in the money supply
Answer:
$3,932,025.94
Explanation:
Multiplier = 1 / rr
Multiplier = 1 / Reserve ratio
Multiplier = 1 / 0.12
Multiplier = 8.3333
Increase in money supply = Multiplier * Increase in excess reserves
Increase in money supply = 8.3333 * $471,845
Increase in money supply = $3,932,025.94
So, the maximum increase in the money supply is $3,932,025.94.
A state is conducting an examination of mortgage loan originator Basil Thyme. During the examination, the agency is authorized to do all of the following, except:a. Administer oaths or affirmationsb. Control access to Basil’s officec. Subpoena witnessesd. Require production of relevant documents
Answer: B. Control access to Basil’s office.
Explanation:
During the conduct of the examination of mortgage loan originator Basil Thyme, the agency is authorized to administer oaths or affirmations, subpoena witnesses and require production of relevant documents.
The agency cannot control the access to Basil's office. It can only control access to any records or documents of an individual whim is under investigation.
1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return
of 15%. The bond has the following characteristics:
Par Value: $1,000
Maturity: 20 years
Coupon Rate: 12%
What would you offer for this bond today?
Answer:
$812.20
Explanation:
Given the following bond characteristic:
Coupon rate = 12%
Market or yield rate = 15%
Years to maturity = 20 years
Face or par value = $1000
Inputting the values into a bond value calculator, the bond value output is : $812.20
This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.
5) name 5 reasonable possibilities to earn money online.
Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000 1-year note receivable and $900 of interest collected by the bank. Marsh Land Properties has been notified by the bank at the time of collection, but had made no entries.
Required:
Journalize the entry that should be made by Marsh Land to bring the accounting records up to date.
Answer:
Dr Cash $15,900
Cr Notes Receivable $15,000
Cr Interest Revenue $900
Explanation:
Preparation of the journal entry that should be made by Marsh Land to bring the accounting records up to date.
Dr Cash $15,900
($15,000+$900)
Cr Notes Receivable $15,000
Cr Interest Revenue $900
The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil
Answer: The supply of plastic will decrease.
Explanation:
Supply simply means the amount of goods and services that a seller is willing to sell at a particular price and a given time period.
It should be noted that one determinant of supply is cost of raw material. Since there's an increase in the price of crude oil which is used in making plastic, there'll be a reduction in the number of plastic that can be produced, therefore, the supply of plastic will reduce.
The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some country’s currency, then how many units of foreign currency does the same basket of goods cost in that country?
Answer:
4000
Explanation:
Calculation to determine how many units of foreign currency does the same basket of goods cost in that country
Based on the information given we were told that the PRICE OF A BASKET OF GOODS is the amount of $2000 in which the dollar buys TWO UNITS of some country’s currency, now let determine HOW MANY UNITS of foreign currency does the same basket of goods cost in that country
Using this formula
Units of foreign currency=Basket of goods price*Some country’s currency units
Let plug in the formula
Units of foreign currency=$2,000* 2 units
Units of foreign currency=4,000 units
Therefore the number of units of foreign currency that the same basket of goods cost in that country is 4,000
The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some country’s currency, then how many units of foreign currency does
s). Marty has been offered an injury settlement of $15 comma 000 payable in 5 years. He wants to know what the present value of the injury settlement is if his opportunity cost is 3.5 %. (The opportunity cost is the interest rate in this problem.) What if the opportunity cost is 7.5 %? What if it is 11.5 %?
Answer and Explanation:
The computation of the present value in each situation is as follows:
As we know that
Present value = Future value ÷ (1 + rate of interest)^time period
When the rate is 3.5%, the present value is
= $15,000 ÷ (1 + 3.5%)^5
= $12,630
When the rate is 7.5%, the present value is
= $15,000 ÷ (1 + 7.5%)^5
= $10,448.38
And, When the rate is 11.5%, the present value is
= $15,000 ÷ (1 + 11.5%)^5
= $8,703.96
Monopoly in the competitive environment a. is enjoyed by few organizations as sole suppliers of a good or service. b. is typical of public utilities -- even more so now than twenty years ago. c. cannot be achieved temporarily even through the use of patents and similar legal devices. d. is the logical extension of a firm's control of its production and labor resources. e. is, all in all, the most common type of competition in the U.S. market.
Answer:
b
Explanation:
and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Because the demand curve for a monopoly is downward sloping, marginal revenue is less than price. As prices fall, more units of the product are bought.
In a monopoly When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses.
For each transaction:
a. analyze the transaction using the accounting equation
b. record the transaction in journal entry form
c. post the entry using T-accounts to represent ledger accounts.
1. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value in exchange for common stock.
2. On May 21, Elegant Lawns purchases office supplies on credit for $500.
3. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
4. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Answer:
Elegant Lawns
a. Analysis of transactions using the accounting equation:
1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000
2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500
3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000
4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000
b. Journal Entries:
Date Account Titles Debit Credit
1. May 15, Assets: Cash $7,000
Assets: Equipment $3,000
Equity: Common stock $10,000
2.
May 21, Assets: Office supplies $500
Liabilities: Accounts Payable $500
3. May 25, Assets: Cash $4,000
Equity: Service Revenue $4,000
4. May 30, Assets: Cash $1,000
Equity: Service Revenue $1,000
c. T-accounts:
Cash
Date Account Titles Debit Credit
1. May 15 Common stock $7,000
3. May 25, Service revenue 4,000
4. May 30, Service revenue 1,000
Equipment
Date Account Titles Debit Credit
1. May 15 Common stock $3,000
Office Supplies
Date Account Titles Debit Credit
2. May 21, Accounts Payable $500
Common Stock
Date Account Titles Debit Credit
1. May 15 Cash $7,000
1. May 15 Equipment 3,000
Accounts Payable
Date Account Titles Debit Credit
2. May 21, Office supplies $500
Service Revenue
Date Account Titles Debit Credit
3. May 25, Cash $4,000
4. May 30, Cash 1,000
Explanation:
a) Data and Analysis with Accounting Equation:
1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000
2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500
3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000
4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000
