Section 2. (Suggested Time: 2 Hours, 15 minutes) Answer any 3 of the following 4
7. Consider a model of search with high- and low-destruction-rate jobs:
Time: Discrete, innite horizon.
Demography: One worker who lives forever.
Determine whether each of the following is a debit or credit using this code:
DR=debit; CR=credit. Mark the correct answer on your answer sheet.
1. The balance side of Transportation In
2. The increase side of Purch
For each item 1 through 6, write Yes if all data for that account is correct; write
No if any of the data is incorrect for that account.
Sales Tax Payable
David Sills, Drawing
For each account title in questions 1 through 14, write the identifying letter of the
correct response (A, B, or C) which indicates whether each account should be
closed and where, or if it should not be closed a
Write the correct identifying letters (DR or CR or NC) on your answer sheet for
items 1 through 7.
DR = this account is closed with a debit
CR = this account is closed with a credit
NC = this account must not be
For items 1 through 15, on your answer sheet write YES if the answer is yes; write
NO if the answer is no.
1. Is Prepaid Insurance a temporary account?
2. Should the owners withdrawal account appear on the Post-C
For questions 1 through 5 indicate the increase side of each of the following by
writing on your answer sheet either DR for debit or CR for credit.
1. Sales Discounts
2. David Solis, Drawing