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marissa [1.9K]
3 years ago
15

On July 1, 2021, Rents-A-Lot Inc. paid $72,000 for 36 months of advance rent on its warehouse. What would be the amount of rent

expense in the 2022 financial statements for Rents-A-Lot under both cash- basis and accrual-basis accounting? | $24,000; Accrual-basis# $24,000. A Cash-basis B. Cash-basis $72,000; Accrual-basis $12,000. C. Cash-basis $O: Accrual-basis $24,000. D. Cash-basis $0: Accrual-basis $12.000.
Business
1 answer:
Agata [3.3K]3 years ago
6 0

Answer:

Option C is correct.

Cash basis $0

Accrual Basis $24,000

Explanation:

The reason is that under the cash basis, the company would record revenue of $72,000 in the first year which ends on 31 Dec, 2021. And on next two year, there is no revenue recorded under cash basis accounting. But under accrual basis, the expenses and associated revenues must be recorded when they are realized. In the first year the realized amount would depend on the number of months the property was in possession of the Rent Inc. If the number of months that the property was in possession was 12 months then the rental expenses realized would be $24,000 ($72000*12/36). So the correct option would be option C.

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  3. Labour efficiency variance = 0

Given:

Standard Number of men = 60

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Standard Number of boys = 20

Standard hour rate for men = R.s 280

Standard hour rate for women = R.s 160

Standard hour rate for boys = R.s 140

Weekly working hour = 40 hours

Expected unit = 5,000 units

Number of men in march week = 70

Number of women in march week = 25

Number of boy in march week = 25

Actual wage for men = R.s 270

Actual wage for women = R.s 165

Actual wage for boys = R.s 130

Actual units = 4,500 units

Find:

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  2. Labour rate variance
  3. Labour efficiency variance

Computation:

Labour cost variance = [SC for AO] - AC

Labour cost variance =  [( 70 × 280) + (25 × 160) + (25 × 140)] - [(70 × 270) + (25 × 165) + (25 × 130)] × 40  

Labour cost variance = (27,100 - 26,275 ) × 40

Labour cost variance =  R.s 33,000 (F)  

Labour rate variance = (SR - AR) × AH worked

Labour rate variance = [(280 - 270)70 + (160 - 165)25 + (140 - 130)25]40

Labour rate variance = [700 - 125 + 250]40

Labour rate variance = [825]40

Labour rate variance = R.s 33000 (F)

Labour efficiency variance = (SH allowed - AH worked)SR

Labour efficiency variance = (0 - 0)SR

Labour efficiency variance = 0

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5 0
2 years ago
Which of the following would most likely suffer the least from the costs of​ inflation?
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B. Persons on fixed incomes.

Explanation:

Inflation is a general increase in prices and fall in the purchasing value of money, therefore, a person with a fixed income will not be affected.

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Our basketball team has finished $80\%$ of its season, during which we won $40\%$ of the games we played. What percent of the re
masya89 [10]

Answer:

90%

Explanation:

Let x be the total number of matches,

Given,

80% of games were finished,

So, the number of finished games = 80% of x = 0.8x

∴ Remained games= x - 0.8x = 0.2x

Now, 40% of 80% of games were won,

So, the winning games in 0.8x matches = 40% of 0.8x

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= 0.32x

In order to finish games with the same number of wins as losses,

Winning percentage in all games must be 50%,

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Let y be the winning percentage in 0.2x games,

So, the total winning games in 0.2x games = \frac{y\times 0.2x}{100}

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0.2y=18

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Hence, the percent of winning the in the remaining games must be 90%.

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warranty

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