The organization’s strategic plan you wrote about in Week 2 calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five years. It is your responsibility to determine how the U.S economy during this five year period will impact such an aggressive growth plan. To do so, you should: Develop a 1,500-1,800 word economic outlook forecast that includes the following: Analyze the history of changes in GDP, savings, investment, real interest rates, and unemployment and compare to forecast for the next five years. Discuss how government policies can influence economic growth. Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables. Describe how trade deficits or surpluses can influence the growth of productivity and GDP. Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan. Recommend, based on your above findings, whether the strategic plan can be achieved and provide support. Use a minimum of 3 peer-reviewed sources from the University Library. Format your paper consistent with APA guidelines. See the Instructor’s Policies document for a partial list of APA requirements |

1. On April 25, Gregg Repair Service extended an offer of $115,000 for land that had been priced for sale at $140,000. On May 3, Gregg Repair Service accepted the seller’s counteroffer of $127,000. On June 20, the land was assessed at a value of $88,000 for property tax purposes. On August 4, Gregg Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in Gregg Repair Service’s records?

$115,000

$88,000

$140,000

$127,000

____ 2. Donner Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $120,000. The Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost concept, what is the amount that will be used to record this transaction in the accounting records?

$107,000

$115,000

$120,000

$122,000

____ 3. The assets and liabilities of the company are $175,000 and $40,000, respectively. Owner’s equity should equal

$215,000

$135,000

$175,000

$40,000

____ 4. If total liabilities decreased by $55,000 during a period of time and owner’s equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period’s change in total assets is

$115,000 increase

$5,000 increase

$5,000 decrease

$115,000 decrease

____ 5. If total assets decreased by $88,000 during a period of time and owner’s equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total liabilities is

$23,000 increase

$88,000 decrease

$153,000 increase

$153,000 decrease

____ 6. Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?

assets increase $75,000; owner’s equity increases $75,000

assets increase $55,000; owner’s equity increases $55,000

assets increase $75,000; liabilities decrease $20,000; owner’s equity increases $55,000

assets increase $20,000; no change for liabilities; owner’s equity increases $75,000

____ 7. Allen Marks is the sole owner and operator of Great Marks Company. As of the end of its accounting period, December 31, 2011, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2012, Allen Marks invested an additional $65,000 and withdrew $45,000 from the business. What is the amount of net income during 2012, assuming that as of December 31, 2012, assets were $995,000, and liabilities were $270,000?

$ 65,000

$ 50,000

$105,000

$370,000

____ 8. Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

Equipment 1,275

Cash 1,275

Accounts Payable 2,725

Equipment 4,000

Equipment Expense 4,000

Accounts Payable 1,275

Cash 2,725

Equipment 4,000

Accounts Payable 2,725

Cash 1,275

____ 9. Joshua Scott invests $65,000 into his new business. How would the journal entry for this transaction be entered in the journal?

Cash 65,000

Joshua Scott, Capital 65,000

Invested cash in business

Cash 65,000

Joshua Scott, Capital 65,000

Invested cash in business

Joshua Scott, Capital 65,000

Cash 65,000

Invested cash in business

Joshua Scott, Capital 65,000

Cash 65,000

Invested cash in business

____ 10.

March

Cash

375

Unearned Fees

375

????????????

What is the best explanation for this journal entry?

Received cash for services performed

Received cash for services to be performed in the future.

Paid cash in advance for services to be done.

Paid cash for services to be performed.

____ 11.

April

Equipment

6,700

Cash

2,000

Note Payable

4,700

????????????

Which is the best explanation for this journal entry?

Purchased equipment, paid cash of $2,000, with the remainder to be paid in payments.

Purchased equipment, paid cash of $4,700, with the remainder to be received in the future.

Purchased equipment, paid cash for the entire amount.

Purchased equipment on credit.

The chart of account for the Corning Company includes some of the following accounts:

Account Name

Account Number

Cash

Accounts Receivable

Prepaid Insurance

Accounts Payable

Unearned Revenue

Corning, Capital

Corning, Drawing

Fees Earned

Salaries Expense

Rent Expense

On the journal page 3, the following transaction was found:

Prepaid Insurance

1,530

Cash

1,530

____ 12. What is the post reference that will be found on the cash account?

None

____ 13. What is the post reference that will be found on the Prepaid Insurance account?

None

____ 14. What is the post reference that will be found on the journal entry?

15, 11

____ 15. The chart of account for the Miguel Company includes some of the following accounts:

Account Name

Account Number

Cash

Accounts Receivable

Prepaid Insurance

Accounts Payable

Unearned Revenue

Miguel, Capital

Miguel, Drawing

Fees Earned

Salaries Expense

Rent Expense

On the journal page 5, the following transaction was found:

Salaries Expense

525

Cash

525

What is the post reference that will be found on the Salaries Expense account?

None

____ 16. The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances.

Accounts Payable

1,500

Fees Earned

3,000

Accounts Receivable

1,800

Insurance Expense

1,300

Investment

2,000

Land

3,000

Cash

2,600

Wages Expense

1,400

Drawing

1,200

Capital

8,800

The total of all the assets is:

$9,400

$9,000

$9,100

$9,800

____ 17. The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances.

Accounts Payable

1,500

Fees Earned

3,000

Accounts Receivable

1,800

Insurance Expense

1,300

Investment

2,000

Land

3,000

Cash

2,600

Wages Expense

1,400

Drawing

1,200

Capital

8,800

Prepare a trial balance. The total of the debits is

$13,300

$9,400

$9,100

$9,600

____ 18. Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

a transaction was not posted

a payment of $67 for insurance was posted as a debit of $42 to Prepaid Insurance and a credit of $42 to Cash

a payment of $1,311 to a creditor was posted as a debit of $3,111 to Accounts Payable and a debit of $311 to Accounts Receivable

cash received from customers on account was posted as a debit of $680 to Cash and a credit of $680 to Accounts Payable

____ 19. The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months’ rent paid on December 1. The adjusting entry required on December 31 is

debit Rent Expense, $6,000; credit Prepaid Rent, $6,000

debit Prepaid Rent, $18,000; credit Rent Expense, $6,000

debit Rent Expense, $18,000; credit Prepaid Rent, $6,000

debit Prepaid Rent, $6,000; credit Rent Expense, $6,000

____ 20. The balance in the office supplies account on June 1 was $6,300, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,500. The amount to be used for the appropriate adjusting entry is

$3,700

$11,900

$5,700

$6,900