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kicyunya [14]
1 year ago
7

Zach company previously recorded receiving $1,000 cash in advance. Zach company has earned ½ of the amount. the adjusting entry

would be:______.
A. Prepaid Rent 2,700
Rent Expense 2,700
B. Rent Expense 2,700
Prepaid Rent 2,700
C. Rent Expense 900
Prepaid Rent 900
D. Prepaid Rent 900
Rent Expense 900
Business
1 answer:
Mamont248 [21]1 year ago
6 0

The correct adjustment entry will be:

Prepaid Rent                     Dr.      900

           To Rent Expense                      900

An adjustment entry is one that is created to properly allocate each accounting period's income and expense amounts.

In order to ensure that the financial accounts at the end of the year are correct and current, it updates previously recorded journal entries. The matching principle is a requirement in accounting that you must follow. According to the matching principle, revenue is recognized when it is earned and costs are recognized when they are incurred.

Making adjusting entries allows you to correctly and timely record company transactions. But only the accrual basis of accounting is covered by this theory. Adjusting entries are not necessary if your company uses the cash basis technique.

To learn more about adjustment entry, click here

brainly.com/question/13716497

#SPJ4

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Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

  • accounting profit = $12,000
  • opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

7 0
2 years ago
The following transactions occur for the Hamilton Manufacturers.
Radda [10]

Answer:

The answer is stated below:

Explanation:

The accounting equation is as follows:

Assets = Liabilities + Stockholders' Equity

Analyzing the transactions:

1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity

So,

Assets        =   Liabilities        +  Stockholders' equity

+ $4,000    = $0                     +  +$4,000

2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.

So,

Assets        =   Liabilities        +  Stockholders' equity

+ $10,500  =   +$10,500         + $0

3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.

So,

Assets        =   Liabilities        +  Stockholders' equity

- $1,200    = $0                        +  -$1,200

7 0
3 years ago
Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the foll
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Answer:A. Cost is greater than net realisable value(NRV)

Explanation:

An inventory should not be higher than the price its sale or use and this requires the comparison of inventory cost to it's ( NRV) and whichever is lower will be used as cost of inventory

NRV= Sales price less cost to completion and less estimated cost necessary to make the sales.

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Answer:

<em>C) Organizational plurality </em>

Explanation:

Organizational plurality is a working environment in which all representatives are encouraged to collaborate in a way that promotes the gains for the company, clients and themselves.

As with the advertising agency, the employees are given chances to follow their decisions and maximize their experience.

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