Identify which account would be debited and credited to record each transaction occurred at Forever Green Lawn Service. The first transaction has been completed as an example. Transactions Debit Credit Ex. Issued a check for monthly rent. Rent Expense Cash 1. Purchased supplies on account. Supplies Accounts Payable 2. Purchased new equipment, issuing a check for a down payment, with balance due in thirty days. Equipment Cash, Accounts Payable 3. Provided services on account. Accounts Receivable Fees Income 4. Purchase supplies for cash. Supplies Cash 5. Issued a check to pay a creditor on account. Accounts Payable Cash 6. Collected payment from credit customer. Cash Accounts Receivable 7. Issued checks to pay employees their monthly salaries. Salaries Expense Cash 8. Performed services for cash. Accounts Receivable Fees Income 9. Received cash for damaged supplies returned. Cash Supplies 10. Issued a check to pay the telephone bill.

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?