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Scorpion4ik [409]
3 years ago
13

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $8

00. Fragmental collected the entire $6,400 cash on October 1 and recorded it as unearned revenue. The journal entry made by Fragmental Co. at year-end on December 31 would be______________.a. A debit to Rent Revenue and a credit to Cash for $2,400.b. A debit to Rent Revenue and a credit to Unearned Rent for $2,400.c. A debit to Cash and a credit to Rent Revenue for $6,400d. A debit to Unearned Rent and a credit to Rent Earned for $2,400.e. A debit to Unearned Rent and a credit to Rent Earned for $4,000.
Business
1 answer:
Georgia [21]3 years ago
4 0

Answer:

A debit to Unearned Rent and a credit to Rent Earned for $2,400

Explanation:

When cash is collected in advance for revenue from lease, the revenue will not be recorded as revenue until the lease service has been performed. Hence the cash collected in advance will be recorded as

Debit Cash  $6,400

Credit Deferred revenue  $6,400

Being cash collected on October 1 for lease to run for 8 months.

Between October 1 and December 31 is 3 months.

Hence, amount earned

= $800 × 3

= $2,400

To recognize this amount, Debit Unearned/Deferred revenue, credit revenue with the amount earned.

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Factors in determining the elasticity of demand for a good
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Answer:

1.  Nature of commodity

2.  Availability of substitutes

3.  Income level

4. Postponement of consumption

5. Number of uses

6. Share in total Expenditure

7. Time period

Explanation:

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Fairway's april sales forecast projects that 7,400 units will sell at a price of $11.90 per unit. the desired ending inventory i
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Consider Country (Z) with a GDP level of 210,000 and a growth rate of 5% in 2019 (i.e. calculated at the end of year 2019). The
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Answer:

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Explanation:

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3 years ago
How do you say no .....without saying no in PERSON?
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Answer:

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Explanation:

7 0
3 years ago
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A company is considering investing in a project that costs $300,000. The company uses straight-line depreciation and estimates t
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Answer:

NPV = $-41,928.18

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

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Cash flow each year from year 1 to 10 = $42,000

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NPV = $-41,928.18

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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