Suppose you have just paid a nonrefundable fee of $1,000 for your meal plan for this academic term. This allows you to eat dinner in the cafeteria every evening.

(a) You are offered a part-time job in a restaurant where you can eat for free each evening. Your parents say that you should eat dinner in the cafeteria anyway, since you have already paid for those meals. Are your parents right? Explain why or why not.

(b) You are offered a part-time job in a different restaurant where, rather than being able to eat for free, you receive only a large discount on your meals. Each meal there will cost you $2; if you eat there each evening this semester, it will add up to $200. Your roommate says that you should eat in the restaurant since it costs less than the $1,000 that you paid for the meal plan. Is your roommate right? Explain why or why not.

P3-5A :F.L. Wright Architects incorporated as licensed architects on April 1, 2007. During the first month of the operation of the business, these events and transactions occurred:Stockholders invested $ 14,000 cash in exchange for common stock of the corporation.1Hired a secretary-receptionist at a salary of $ 375 per week, payable monthly. 2Paid office rent for the month $ 900.3Purchased architectural supplies on account from Spring Green Company $ 1000.Completed blueprints on a carport and billed client $ 1,100 for services.Received $ 500 cash advance from J. Madison to design a new home.Received $ 2,300 cash for services completed and delivered to M. Svetlana.Paid secretary-receptionist for the month $ 1,500.Paid $ 100 to Spring Green Company for accounts payable due.The company uses these accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Revenue, Common Stock, Service Revenue, Salaries Expense, and Rent Expense.Instructions(a)Journalize the transactions, including explanations.(b)Post to the ledger T accounts.(c)Prepare a trial balance on April 30, 2007.