Games R Us manufactures various games. For March, there were no beginning inventories of direct materials and no beginning or en

Answer:

The reversing entries are outlined below

Explanation:

The accountant should reverse the entries made for salaries payable and interest receivable accruals.

December 31, 2021 (To document interest receivable)

                                                                        DEBIT               CREDIT

Interest receivable [$115,000*8%*3/12]         2300

Interest revenue                                                                          2300

December 31, 2021 (To document salaries payable)

                                         DEBIT            CREDIT

Salaries expense            7550

Salaries payable                                       7550

January 1, 2022  (To reverse entry from December 31, 2021)

                                             DEBIT           CREDIT

Interest revenue                   2300

Interest receivable                                      2300

January 1, 2022  (To reverse entry from December 31, 2021)

                                              DEBIT              CREDIT

Salaries payable                     7550

Salaries expense                                               7550

Answer:Jalen journal $

Date

Jan 1,2021

Land Dr. 860,887

Note payable Cr. 860,887

Narration. Issuance of note for the above amount, payable in four installments for land purchase.

June 30,2021

Note payable Dr 215,221.64

Cash Cr. 215,221.64

Narration. Payment of the first installment for the land acquisition.

December 31,2021

Note payableDr 215,221.64

Cash.Cr. 215,221.64

Narration. Payment of the second installment for the land acquisition.

2. Remaining balance on note payable as of December 31, 2021 is $400,000

Interest expense balance is $30,443.28.

Explanation:

The land account is debited to reflect its purchase, while the notes payable account is credited to recognize the liability.

Payments made in the first and second periods debit the respective installment amounts.

The note payable balance indicates the outstanding principal payments of $800,000, whereas the interest expense denotes the additional amount beyond the principal.

Answer:

The question lacks completeness; the following addition would enhance it:

"If Realtors require a 5 percent commission on the sale price and every Realtor faces opportunity costs of $2,000 to negotiate a sale, will Carlos opt to hire a Realtor? If he does, how will the overall economic surplus change?"

The result is that the total economic surplus rose from $20,000 to $248,000.

Explanation:

It is essential to grasp the concepts of marginal cost, marginal benefit, and asymmetric information. Marginal cost refers to the additional cost incurred from utilizing one more unit of a resource, while marginal benefit signifies the advantage gained from that investment. Asymmetric information arises when one side in a transaction possesses more information than the other.

Carlos's reservation price stands at $130,000. He intends to sell for $140,000 to Whitney, whose reservation price is $150,000. Thus, Carlos enjoys a surplus of 140,000 - 130,000 = $10,000, and Whitney has a surplus of 150,000 - 140,000 = $10,000. Consequently, the total economic surplus amounts to $20,000.

Should Carlos enlist a realtor, who charges 5% if the property is sold for $300,000 to someone with a reservation price of $350,000, the surplus would be calculated as:

5% × 300,000 - 2000 = $13,000.

Here, the surplus equals 300,000 - 130,000 + 15,000 = $185,000.

Hence, the buyer's surplus is:

350,000 - 300,000 = $50,000.

Thus, the total economic surplus has increased from $20,000 to $248,000.