Answer:
The journal entries are as follows:
(i) On January 1, 2021
Delivery Truck A/c Dr. $10,000
To 6% loan note payable $10,000
(To record the issuance of note payable)
(ii) On January 31, 2021
6% loan note payable A/c Dr. $254.22
Interest expense A/c Dr. $50
To cash $304.22
(To record the first month payment)
Workings:
Interest expense = $10,000 × 6% × (1/12)
= $50
Answer:
<u>New York Times (NYT) Cost per Thousand Impressions (CPM):
</u>
Cost per Thousand Impressions = Advertisement Cost / (Impressions / 1000)
Cost per Thousand Impressions = $12,000 / (251,000 /1000)
Cost per Thousand Impressions = $12,000 / 251
Cost per Thousand Impressions = $47.8
<u>NYT CPM for College Professors:
</u>
Impressions generated = 251,000 × 11%
Impressions generated = 27610
CPM = Advertisement Cost / (Impressions / 1000)
CPM = $12,000 / (27610 / 1000)
CPM = $12,000 / 27.61
CPM = $434.6
Answer:
B. Decrease $19,000
Explanation:
The computation of the amount affect the operating income is shown below
But before that first we need to find the new operating income
Total operating income for Cat Food $280,000
Less: Fixed costs for Dog Food ($52000)
Add: rented per year $26000
New net operating income $254000
Now decrease in net operating income is
= operating income - new operating income
= $273,000 - $254,000
= $19,000
