You are chair of the federal reserve board. in your meeting with the federal open market committee, the committee unanimously votes to increase the money supply using open market operations (omos). during the press conference after the meeting, a reporter asks you to explain what omos are and how you will use them to increase the money supply. you reply that: (a) omos alter reserve requirement up or down. the money supply will increase when we use omos to decrease the reserve requirement. (b) omos are the selling and buying of government securities. the money supply increases q when selling occurs and contracts when buying occurs. omos work by changing the amount of excess reserves available in the banking system. (c) open market operations refer to manipulating the rate at which the fed loans to member banks. increasing the money supply occurs when the fed increases this rate, which decreases the amount of required reserves in the banking system. (d) omos are the purchase and sale of government securities. to increase the money supply we will buy government securities which increases the amount of reserves in the banking system and fuels deposit expansion.

The law firm of furlan and benson accumulates costs associated with individual cases, using a job order cost system. the following transactions occurred during july: jul. 3 charged 175 hours of professional (lawyer) time to the obsidian co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10 reimbursed travel costs to employees for depositions related to the obsidian case, $12,500. 14 charged 260 hours of professional time for the obsidian trial at a rate of $185 per hour. 18 received invoice from consultants wadsley and harden for $30,000 for expert testimony related to the obsidian trial. 27 applied office overhead at a rate of $62 per professional hour charged to the obsidian case. 31 paid administrative and support salaries of $28,500 for the month. 31 used office supplies for the month, $4,000. 31 paid professional salaries of $74,350 for the month. 31 billed obsidian $172,500 for successful defense of the case. required: a. provide the journal entries for each of these transactions. refer to the chart of accounts for exact wording of account titles. b. how much office overhead is over- or underapplied? c. determine the gross profit on the obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.