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weeeeeb [17]
3 years ago
7

Wall Co. leased office premises to Fox, Inc. for a five-year term beginning January 2, 20X2. Under the terms of the operating le

ase, rent for the first year is $8,000 and rent for years 2 through 5 is $12,500 per annum. However, as an inducement to enter the lease, Wall granted Fox the first six months of the lease rent-free. In its December 31, 20X2, income statement, what amount should Wall report as rental income
Business
1 answer:
jasenka [17]3 years ago
7 0

Answer:

Since the lease amount varies, we must calculate the annual rental income using the following formula:

annual rental income = {lease year 1 - (lease year 1 x 6/12) + [lease year 2(and beyond) x number of remaining contract years] / total number of contract years}

annual rental income = [$8,000 - ($8,000 x 6/12) + ($12,500 x 4)] / 5 years = {$8,000 - $4,000 + $50,000} / 5 years = $54,000 / 5 = $10,800

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The GDP deflator is a measure of the A. average level of prices of intermediate goods and services in the economy. B. total prod
Alexeev081 [22]

Answer:

D. average level of prices of final goods and services in the economy.

Explanation:

The GDP deflator is a measure of the average level of prices of final goods and services in the economy

5 0
3 years ago
CEO compensation is often in the news. In response to this, some CEOs at large companies have agreed to set their base pay at $1
iren2701 [21]

Stock options and bonus's - in other words deferred compensation. These can be either vested or non vested, among other things.

Explanation:

The use of deferred compensation is usually tied to the performance of the company or vested so that the CEO must perform well for the company ot at least last a certain tenure. This is the bread and butter of executive compensation, there have been more creative ways in recent times however.

4 0
3 years ago
Rolfes Company purchased merchandise on account from a supplier for $7,500, terms 1/10, n/30. Rolfes Company returned $1,200 of
Blababa [14]

Answer:

$6,237

Explanation:

The computation of the cash required for the payment is shown below:

= Merchandise amount - return and allowances - discount

= $7,500 - $1,200 - $63

= $6,237

The discount = (Merchandise amount - return and allowances) × discount rate

= ($7,500 - $1,200) × 1%

= $63

Simply we consider the items i.e merchandise purchase amount, returned merchandise amount and the discount given amount

6 0
3 years ago
The following transactions occur for Cardinal Music Academy during the month of October: a. Provide music lessons to students fo
Licemer1 [7]

Answer:

Part a

Debit : Cash $9,000

Credit : Service Revenue $9,000

Part b

Debit : Prepaid Insurance $3,240

Credit : Cash $3,240

Part c

Debit : Equipment $12,000

Credit : Cash $12,000

Part d

Debit : Cash $14,000

Credit : Loan Payable $14,000

Explanation:

Step 1 : Identify the Accounts affected in each and every transaction.

Step 2: Then determine if this Account is increasing or decreasing.

Step 3 :The journal entries have been prepared above.

6 0
3 years ago
The Whole Foods chain of supermarkets has stated, "With great courage, integrity, and love, we embrace our responsibility to co-
damaskus [11]

Answer:

Values Statement.

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Value Statement: It shows that what an organization believes in, what are their values, where does the company stands in terms of morality. Moreover, value statement reflects the priority of the company and tells if it is inclined towards profit or collective goods more.

<em>As</em> the whole foods communicated that they don't want any harm towards the planet and claim themselves as responsible ones to care for this planet, it suggests that this is their value statement.

3 0
3 years ago
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