Ken cascioli and bill ryder, master painters and paperhangers, formed a partnership. they had the following transactions during their first month of business. record the debits and credits, without making explanations.

1. ken and bill each invested $3,000 in the business. (note: use separate capital accounts for each.)

2. ken and bill acquired the following items of equipment for use in the business:

a. ladders and other equipment, for which they paid $1,800 in cash. they estimated that the equipment would have an average useful life of 6 years.

b. a pickup truck, which they bought for $10,000. they paid $2,000 in cash as a down payment and signed a note for the remainder, agreeing to pay $1,000 a month for the next 8 months, together with interest at the rate of 5 percent per annum on the unpaid balance of the loan. they estimated the truck would have a useful life of 4 years.

3. they took out a 3-year insurance policy related to their business activities, paying $1,200 cash.

4. they paid $380 for paint and other supplies, all of which was consumed on the various painting jobs they did during the month.

5. they paid $80 for gasoline for the pickup truck.

6. ken and bill expect payment from their customers every friday for work done during the week. during the month they collected $9,380 in cash for their work.

Carver company produces a product which sells for $30. variable manufacturing costs are $15 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 10% of the selling price is paid on each unit sold. the contribution margin per unit is:

The owners of backstreets italian restaurant are considering starting a delivery service forpizza and their other italian dishes in the small college town where they are located. theycan purchase a used delivery van and have it painted with their name and logo for $21,500.they can hire part-time drivers who will work in the evenings from 5 p.m. to 10 p.m. for$8 per hour. the drivers are mostly college students who study at the restaurant when theyare not making deliveries. during the day, there are so few deliveries that the regular employeescan handle them. the owners estimate that the van will last 5 years (365 days per year)before it has to be replaced and that each delivery will cost about $1.35 in gas and othermaintenance costs (including tires, oil, scheduled service, they also estimate that onaverage each delivery order will cost $15 for direct labor and ingredients to prepare andpackage, and will generate $34 in revenue.a. how many delivery orders must backstreets make each month in order for the service to break even? b. the owners believe that if they have approximately the break-even number of deliveries during the week, they will at least double that number on fridays, saturdays, and sundays. if that’s the case, how much profit will they make, at a minimum, from their delivery service each month (4 weeks per month)?

Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: