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alisha [4.7K]
3 years ago
5

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

7,500 cash. Purchase prepaid insurance to protect musical equipment over the next year for $3,060 cash. Purchase musical equipment for $10,500 cash. Obtain a loan from a bank by signing a note for $11,000.
Record the transactions. The company uses the following accounts:
Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.
Business
1 answer:
Nataly_w [17]3 years ago
4 0

Answer and Explanation:

The journal entries are shown below:

cash Dr $7,500

     To Service revenue $7,500

(being cash receipts is recorded)

Prepaid insurance $3,060

    To cash $3,060

(being cash paid is recorded)

Musical equipment Dr $10,500

   To cash $10,500

(being cash paid is recorded)

Cash Dr $11,000

     To note payable $11,000

(being receipt of the loan is recorded)

These four journal entries are need to be recorded

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Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimat
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Answer:

Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Drexel-Hall stores.

  • total monthly sales should decrease from $1,800,000 to $1,380,000 = a $420,000 reduction

b. The monthly responsibility margin of Stores 1 and 2.

  • store 1 responsibility margin increased from 10% to 12.55% (2.55% increase)
  • store 2 responsibility margin increased from 9% to 13.69% (4.69% increase)

c. The company’s monthly income from operations.

  • increased from $72,000 to $140,200 ($70,200 increase)

Explanation:

                                                Store                 Store                Total                                          

                                                   1                         2

Sales                                         $660,000          $720,000     $1,380,000

Variable costs                          $409,200          $453,600        $862,800

Contribution margin                $250,800          $266,400         $517,200

Controllable fixed costs           $120,000          $102,000        $222,000

Performance margin                $130,800           $164,600        $292,200

Committed fixed costs              $48,000            $66,000         $114,000

Store responsibility margin      $82,800             $98,600        $178,200

Common fixed costs                                                                    $38,000

Income from operations                                                             $140,200

4 0
3 years ago
Columbia Products produced and sold 1,200 units of the company’s only product in March. You have collected the following informa
Leya [2.2K]

Answer:

1. $70

2. $106.42

Explanation:

(1) Variable manufacturing cost per unit:

= Direct labor + Direct material + Variable overhead

= $10 + $34 + $26

= $70

(2) Full cost per unit:

= Direct labor + Direct material + Variable overhead + Variable selling cost + (Fixed ÷ 1,200)

= $10 + $34 + $26 + $5 + [(19,500 + 18,200) ÷ 1,200)]

= $75 + $31.42

= $106.42

8 0
3 years ago
The amount of the average investment for a proposed investment of $191,000 in a fixed asset with a useful life of 4 years, strai
sineoko [7]

$30300
Annual depreciation = (purchase price - salvage value) / useful life
Straight line depreciation = Annual depreciation / (purchase price -salvage value)
The steps in calculating a straight line depreciation are:
Find out how much the asset costs.
To determine the entire depreciable amount, deduct the asset's estimated salvage value from the asset's purchase price.
Find out how long the item will be useful.
To calculate the annual depreciation amount, multiply the total from steps (2) and (3) by the figure determined in steps (3).
i.e, = $191000-$30300 = $160700
an asset with a useful life of 4 =$160700/4 =$40 175
so the straight-line depreciation rate is at 4.7%
In 4 years Straightline depreciation will be $30300
To learn more about Straight line depreciation please refer to-
brainly.com/question/11974283
#SPJ4

6 0
2 years ago
Careers with adverse working conditions often demand higher wages. Adverse working conditions might include
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Answer:

uncomfortable environment

Explanation:

Adverse working conditions create challenges for employees as they execute their mandate. These conditions may result from extreme weather, either very hot such, extremely cold, floods, snow, or windy. Adverse conditions could also refer to security concerns in place of work.

Political unrest, high crime rate, and civil wars create adverse conditions. The nature of work can also make working a challenge.  Miners working many feet underground or soldiers on a battlefield are examples of challenges due to work.

4 0
3 years ago
A company is considering opening a new product line. The building being considered will have a monthly lease and utility payment
abruzzese [7]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the total fixed costs:</u>

Total fixed costs= 3,500 + (120*2*15)

Total fixed costs= $7100

<u>Now, using the following formula, we can determine the break-even point in units:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 7,100 / (100 - 40)

Break-even point in units= 118.33 = 119 units

<u>Finally, the number of units to earn $10,000 in profit:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (7,100 + 10,000) / 60

Break-even point in units= 285

4 0
3 years ago
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