Use the following information from the Adjustments columns of a 10-column work sheet. Adjustments No. Account Title Dr. Cr. 109 Interest receivable (d) $ 628 124 Office supplies (b) $ 1,716 128 Prepaid insurance (a) 966 164 Accumulated depreciation—Office equipment (c) 3,300 209 Salaries payable (e) 708 409 Interest revenue (d) 628 612 Depreciation expense—Office equipment (c) 3,300 620 Office salaries expense (e) 708 636 Insurance expense—Office equipment (a) 464 637 Insurance expense—Store equipment (a) 502 650 Office supplies expense (b) 1,716 Totals $ 7,318 $ 7,318 Prepare the necessary adjusting journal entries (a) through (e).

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u.s. and the european automobile markets are 300 million and 533 million people, respectively.a. calculate the equilibrium number of firms in the u.s. and european automobile markets without trade.b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?