For each of the following independent situations, prepare journal entries to record the initial transaction on september 30 and the adjustment required on october 31. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.) hockey paid $4,200 cash on september 30 to rent an arena for the months of october and november. super stage shows received $16,200 on september 30 for season tickets that admit patrons to a theatre event that will be held twice (on october 31 and november 30). risky ventures paid $3,150 on september 30 for insurance coverage for the months of october, november, and december.

rent expense 2,100 debit

rent prepaid   2,100 credit

               cash               4,200 credit

rent expense   2,100 debit

         rent prepaid           2,100 credit

cash         16,200 debit

     unearned revenue      16,200 credit

unearned revneue 8,100 debit

   service revenue         8,100 credit

prepaid insurance   3,150 debit

                  cash                   3,150 credit

insurance expense 1,050 debit

    prepaid insurance      1,050 credit

Explanation:

A) one month is rent expense while the other prepaid.

4,200 / 2 months = 2,100

at october 31th we accrued the month rent expense and decrease the payable

B) this will be unearned revenu

at month end we recognize half as there are two events and one has already occur

16,200 / 2 = 8,100

C) similar to A but this time the contract is for three mont hand all are prepaid when paying.

3,1050 / 3 = 1,050

at the end of the month, we adjust and recognze insurance expense.

turnover

the amount of money taken by a business in a particular period.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.