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ycow [4]
2 years ago
7

The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $

17,000 cash. Purchase prepaid insurance to protect musical equipment over the next year for $4,200 cash. Purchase musical equipment for $20,000 cash. Obtain a loan from a bank by signing a note for $30,000.Record the transactions. The company uses the following accounts: Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.
Business
1 answer:
givi [52]2 years ago
8 0

Answer:

See explanation section

Explanation:

1. Debit     Cash                   $17,000

Credit            Service revenue (music)       $17,000

<em>Note: The academy receives cash by providing music services to the students.</em>

2. Debit     Prepaid Insurance          $4,200

Credit                    Cash                                 $4,200

<em>Note: The academy paid cash in advance to purchase insurance policy.</em>

3. Debit    Musical Equipment           $20,000

Credit                     Cash                                    $20,000

<em>Note: The academy paid cash for acquiring musical equipment.</em>

4. Debit     Cash                              $30,000

Credit             Notes payable                           $30,000

<em>Note: The academy borrowed cash by signing a notes from the bank.</em>

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Answer:

Step 1:

Start by setting it up with the divisor 20 on the left side and the dividend 16 on the right side like this:

           

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Step 2:

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Step 3:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer below the dividend.

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Step 4:

Subtract the result in the previous step from the first digit of the dividend (1 - 0 = 1) and write the answer below.

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Step 5:

Move down the 2nd digit of the dividend (6) like this:

       0    

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     - 0    

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Step 6:

The divisor (20) goes into the bottom number (16), 0 time(s). Therefore, put 0 on top:

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 2 0 ⟌ 1 6  

     - 0    

       1 6  

Step 7:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer at the bottom:

       0 0  

 2 0 ⟌ 1 6  

     - 0    

       1 6  

        0  

Step 8:

Subtract the result in the previous step from the number written above it. (16 - 0 = 16) and write the answer at the bottom.

       0 0  

 2 0 ⟌ 1 6  

     - 0    

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You are done, because there are no more digits to move down from the dividend.

The answer is the top number and the remainder is the bottom number.

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Explanation:

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