Prepayment of Expenses JDM Inc. made the following prepayments for expense items during 2011:
a. Prepaid building rent for one year on April 1 by paying $6,600. Prepaid rent was debited for the amount paid.
b. Prepaid twelve months’ insurance on October 1 by paying $4,200. Prepaid insurance was debited.
c. Purchased $5,250 of office supplies on October 15, debiting supplies for the full amount. Office supplies costing $1,085 remain unused at December 31, 2011.
d. Paid $600 for a 12-month service contract for repairs and maintenance on computer. The contract begins November 1. The full amount of the payment was debited to prepaid repairs and maintenance.
Required:
1. Prepare journal entries to record the payment of cash for each transaction.
2. Prepare adjusting entries for the prepayments at December 31, 2011.
3. For all of the above items, assume that the accountant failed to make the adjusting entries. What would be the effect on net income?

Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. the economist proposes the following relationship: p=a x m - p=price level - m=money supply - a=a composite of other factors, including real gdp, that change very slowly over time. how might an economist gather empirical data to test the proposed relationship between money and the price level? an economist would persuade the federal reserve to change the money supply to various levels, and observe the resulting changes in the price level. unlike researchers in the hard sciences, economists cannot study complex relationships using data. economists do not usually develop theoretical models of the economy but only analyze summary statistics about the current state of the economy. an economist would look for data on past changes in the money supply, and note the resulting changes in the price level

Compare the sources of consumer credit(there's not just one answer)1. consumers use a prearranged loan using special checks2. consumers use cards with no interest and non -revolving balances3. consumers pay off debt and credit is automatically renewed4. consumers take out a loan with a repayment date and have a specific purposea. travel and entertainment creditb. revolving check creditc. closed-end creditd. revolving credit

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?