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andrew-mc [135]
3 years ago
11

On January 4, 2019, Kiley Co. leased a building to Dodd Corp. for a ten-year term at an annual rental of $200,000. At the beginn

ing of the lease, Kiley received $800,000 covering the first two years' rent of $400,000 and a security deposit of $400,000. This deposit will not be returned to Dodd upon expiration of the lease but will be applied to payment of rent for the last two years of the lease.What portion of the $800,000 should be shown as a current and long-term liability in Kiley's December 31, 2019 balance sheet? Current Liability Long-term Liabilitya. $0 $800,000b. $200,000 $400,000c. $400,000 $400,000d. $400,000 $200,000
Business
1 answer:
finlep [7]3 years ago
4 0

Answer:

b. $200,000 $400,000

Explanation:

As it given that $800,000 received by Kiley,  out of which $400,000 is the security deposit amount  and remaining $400,000 represents the current year and the next year rent  

So we assume $200,000 is the current year rent revenue and the other $200,000 represents the unearned rent revenue which is reflected as a current liability

And, the security amount is shown as a long term liability

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on september 30 world co. borrowed $1,000,000 on a 9% note payable. World paid the first of four quarterly payments of $264,200
goldenfox [79]

Answer: The appropriate entry for the note payable as at 31 December is $758,300.

Explanation: The interest expense on the note is calculated as: $1,000,000 *9/12 *3/12 months = $22,500. The amount paid for the first of the quarterly payment was $264,200. Therefore, note principal repayment can be derived by subtracting the interes accrued from the actual payment, that is, $264,200 minus $22,500 = $241,700. To get the principal note balance, you would subtract $241,700 from $1,000,000, leaving a balance of $758,300.

The appropriate adjusting entries would be:

On 30 September: Debit Cash $1,000,000, Credit Note payable (current liabilities) $1,000,000

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On first payment of the quarter, the entity would raise these entries: Dr Interes payable $22,500, Dr note payable (current liabilities) $241,700 Credit Cash $264,200.

8 0
3 years ago
Katrina receives an offer to buy a box of candy through the mail each month. The letter says that she will begin receiving candy
Katarina [22]

Answer:D. Does not constitute an acceptance of the offer.

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3 0
3 years ago
Drying times for newly painted microwave oven cabinets are normally distributed with a mean of 2.5 minutes and a standard deviat
Marina86 [1]

Answer: 3.22

Explanation:

Given that;

mean = 2.5 min

standard deviation = 0.25 min

now to get the value of X required, we say

z = (x - u) / a

where z is the distance from the mean measured in the standard deviation units, x is the value we are interested in, u is the mean distribution, a is the standard deviation of the distribution.

the time delay should be just enough to allow 99.8% of the cabinets to dry completely = 99.8/100 = 0.9980

first we determine an appropriate z value.

Using the standardized normal tables,

value of z for approximately 0.9980 is 2.88

so using our initial equation z = (x - u) / a

we substitute the value

z = (x - u) / a

2.88 = ( x - 2.5) / 0.25

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x = 0.72 + 2.5

x = 3.22

5 0
2 years ago
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