The following transactions occur for Cardinal Music Academy during the month of October:
a. Provide music lessons to students for $12,000 cash.
b. Purchase prepaid insurance to protect musical equipment over the next year for $3,600 cash.
c. Purchase musical equipment for $15,000 cash.
d. Obtain a loan from a bank by signing a note for $20,000.
Record the transactions. The company uses the following accounts: Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.
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