1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Olenka [21]
3 years ago
5

On October 1, Year 1, Jason Company paid $7,200 to lease office space for one year beginning immediately. What is the amount of

rent expense that will be reported on the Year 1 income statement and what is the cash outflow for rent that would be reported on the Year 1 statement of cash flows?
Business
1 answer:
victus00 [196]3 years ago
6 0

Answer:

The amount of rent expense that will be reported on the Year 1 income statement is $1,800 .

The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $5,400.

Explanation:

Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.

The duration of the payment is 12 months, hence  

Monthly amortization = $7,200/12 = $600

Rent expense for year 1 = $600 × 3 = $1,800

The ending balance in the prepaid rent account will be  

= $7,200 - $1,800

= $5,400

This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.

You might be interested in
Which of the following is far more effective, has greater longevity, and has a far wider audience than advertising?
Alecsey [184]

The answer is publicity. Hope I helped!

4 0
3 years ago
Read 2 more answers
A company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. Ho
Bumek [7]

Answer:

Value of company = $982.16

Explanation:

The free cash flow is the cash generated by a company that is not retained and reinvested. It is the cash flow available to all providers of capital . It is available to pay dividend or finance other project

The value of the company would be the present value of its free cash flow discounted at the weighted average cost of capital.

Value of company )year 4= 85/(0.12-0.065) = 1,545.45

Value of company (in year 0) = 1,545.45× 1.12^(-4)= 982.16

Value of company = $982.16 millions

7 0
3 years ago
Should a president be held responsible for an underperforming economy?
Lana71 [14]
Yes he should be because people had higher expectations
3 0
3 years ago
Michael porter says that companies gain a competitive advantage by giving customers __________.
Delicious77 [7]

That companies gain a competitive advantage by giving customers focus, cost leadership, and differentiation

<h3>What is competitive advantage?</h3>

A firm seeks a competitive advantage when it aims to surpass its rivals in terms of profitability. An organization must be able to communicate to its chosen target market that it has a higher comparative or differential value than its rivals in order to establish and retain a competitive advantage. For instance, a business is likely to have a competitive advantage if it advertises a product at a lower price than a similar product from a rival. The same holds true if the marketed item is more expensive but has special characteristics that buyers are ready to pay for.

The SWOT (Strengths, Weaknesses, Opportunities, and Threats) analytical technique is credited to Albert Humphrey at the Stanford Research Institute. Porter's Five Forces is an alternative model that helps businesses understand their position within a competitive landscape.

8 0
1 year ago
What organization did ukraine want to join that russia did not want them to join?.
IgorC [24]

Answer:

Ukraine wanted to join NATO but Russia sees that as a no-no

Explanation:

facts

3 0
2 years ago
Other questions:
  • Computers are typically protected from viruses by the use of
    12·2 answers
  • What is capital gains?
    11·1 answer
  • A friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good bus
    9·1 answer
  • Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online co
    9·1 answer
  • The Polishing Department of Marigold Company has the following production and manufacturing cost data for September. Materials a
    15·1 answer
  • The action of using a mouse to drag a selection from its original location and drop it in a new location
    7·1 answer
  • The Hylands Hotels are liquidating their partnership. Before selling the assets and paying liabilities, the capital balances for
    13·1 answer
  • A multi-location flower shop receives payment from customers in person, over the Internet, and through the mail. When checks com
    15·1 answer
  • The balanThe balance in the supplies account before adjustment at the end of the year is $780. The proper adjusting entry if the
    7·1 answer
  • The demand for ski rentals falls when the price of lift tickets increases. This is an example of?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!