Assignment 2, Ch. 4 & 5, Demand & Supply, and Elasticity of demand (10 marks) 1. The table below shows the market for frozen yogurt and the three people who make up the market Price (s per serving) 7.00 6.00 5.00 Quantity demanded (Servings per week) Jo Eli Sam 1 0 0 2 0 4 3 1 If the price is $6 per serving, each week A) The market demand is 3 servings B) The market supply is 3 servings C) The market demand is 7 servings D) There will be a shortage of frozen yogurt. E) There will be a surplus of frozen yogurt 2. When the price exceeds the equilibrium price, the quantity demanded is supplied and the price of the good will the quantity A) Less then, fall B) Greater than rise Assignment 10 marks Adjusting Entries The following balance appeared in Tobacco Industries trial balance at 30/04/2019 Cr Details Cash a/c receivable Prepaid rent Supplies Equipment a/c payable Unearned service revenue Share capital ordinary Dr 27,000 12,000 9,000 5,400 44,000 I 3,000 8,000 86,400 A deep testing of each account in the trial balance revealed the following: 1. Supplies on hand by end of April were 2,000. 2. Equipment depreciated by 440 monthlies. 3. Prepaid rent amount was for 3 months 4. 3,000 of unearned revenues was provided during April. 5. Salaries of April accrued but not paid worth 6,200 6. A 2,000 cash worth service revenue performed during April but not recorded. Required: prepare all necessary adjusting entries and adjusted trial balance