The main character is Brian
Answer:
The outflow of cash in respect of rent is $270,000
Explanation:
The task is compute cash outflows on rent in the year 2018.
The prepaid rent at the end of 2017 relates to rent expense but was paid last year hence should be deducted from rent expense in the year,
On the other hand , the prepaid expense for 2018 was paid during the year hence should be added to rent expense in order to cash cash outflow relating to rent expense
Rent expense $259,000
Prepaid rent 2017 ($94,000)
prepaid rent 2018 $105,000
Cash paid in 2018 $270,000
Ultimately the outflow of cash in respect of rent in the year is $270,000
Answer:
Lowland, Inc., entry to record this conversion includes a
Dr Bonds Payable $900,000
Cr Common Stock $540,000
( 90,000 shares x $6 par value per share)
Cr Paid-In Capital in Excess of Par Value $360,000
($900,000 -$540,000)
Explanation:
Since Lowland, Inc. converted its $900,000 par value bonds and carrying value also $900,000) into 90,000 shares of $6 par value common stock which means we have to Debit Bonds Payable with $900,000 and Credit Common Stock with $540,000 which is
( 90,000 shares x $6 par value per share) , then Credit Paid-In Capital in Excess of Par Value for $360,000 which is ( value of bonds converted of $900,000 - par value of shares of common stock issued of $540,000).
