1. What must be given up in order to gain something else:

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

Masteriza [31]

Answer:

a. Journal entry to record music lesson

Date Account title and Explanation Debit Credit

October Cash $12,500

Service revenue $12,500

(To record music lesson for cash)

b. Journal entry to record prepaid insurance purchase

Date Account title and Explanation Debit Credit

October Prepaid insurance $3,660

Cash $3,660

(To record prepaid insurance paid for next year)

c. Journal entry to record musical equipment purchased

Date Account title and Explanation Debit Credit

October Equipment $15,500

Cash $15,500

(To record musical equipment purchase for cash)

d. Journal entry to record

Date Account title and Explanation Debit Credit

October Cash $21,000

Notes payable $21,000

(To record loan taken by signing a note)

6 0

2 years ago

On January 1, ABC, Inc., issued $100,000 of 10%, 5-year bonds, for $92,280. Interest is due semiannually. When ABC records the f

Rina8888 [55]

Answer:

A. The debit to Interest Expense will be greater because the market rate is greater than the stated interest rate.

Explanation:

The effective interest rate is the market rate which is real rate of interest payment after incorporating the compounding effect. When the effective interest rate is greater than the stated the bond will sell at discount. The stated interest rate determines the amount of interest borrower will have to pay. The effective interest rate lead to higher returns than stated interest rate.

5 0

2 years ago

Eaton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or thr

natita [175]

Answer:

The correct answer is b. $1,300,000

Explanation:

The computation of unearned service revenue is shown below:

= Outstanding service contracts for 2011 + Outstanding service contracts for 2012 + Outstanding service contracts for 2013

= $380,000 + $570,000 + $350,000

= $1,300,000

The other amounts are not considered in the computation part. So, it is ignored.

Thus, the $1,300,000 is the amount which should be reported as Unearned Service Revenues in Eaton's December 31, 2010 balance sheet.

Hence, the correct answer is b. $1,300,000

3 0

2 years ago

A small foundry agrees to pay $220,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to

MaRussiya [10]

Answer:

A) $24,602

Explanation:

We can solve this question by finding the periodic deposits needed by using the formula:

$FV=PMT*\frac{(1+i)^n-1}{i}$

where:

FV= future value = $220,000

PMT = periodic deposits required = ???

i = effective interest rate per period = 0.0331

n= number of deposits = 8

However, since the interest is compounded monthly, let's also calculate the effective interest rate

Effective interest rate = $(1+\frac{r}{m}) ^m-1$

where; r = 12.5% = 0.125

$(1+\frac{0.125}{12})^{12} -1$

= 0.1324

Interest rate per period = $\frac{0.1324}{4}$

= 0.0331

Then;

$220,000=PMT*\frac{(1+0.033)^8-1}{0.033}$

220,000 = PMT × 8.986

PMT = $\frac{220,000}{8.986}$

PMT = $ 24,482.5

Since A) $24,602 is closer to $ 24,482.5

Therefore, $ $24,602 must be deposited every three months

3 0

3 years ago

trasher [3.6K]

Answer:

Encourage Open Communication. ...

Offer Mental and Physical Health Benefits. ...

Bring in Meditation Classes. ...

Offer Paid Time Off. ...

Encourage Employees to Take Breaks. ...

Take the Team Out on Company Offsites. ...

Bring Some Diversions into the Office. ...

Consider Flexible

5 0

2 years ago