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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.

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The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $80,000 a
mezya [45]

Answer:

Jacobs will earn $1,080,000

Explanation:

The earnings of the work factor are made up of two factors: Transfer Earnings + Economic Rents.

Transfer earnings are defined as the minimum required amount that a company must pay its workers to keep them in the workplace. Below this amount, the worker will leave his job. In this case, the Transfer Earnings are $ 80,000, which is the base salary of every designer.

On the other hand, the Economic Rents are the additional income that the worker receives and that is above the minimum level they need to supply his work (In this case, the additional income is given by Jacobs' special ability). In numerical terms, the Economics Rents amount is equivalent to the difference between the earnings obtained by the Jacobs company and the earnings obtained by the other companies.

That is: 1,500,000 - 500,000 = 1,000,000.

Therefore Jacobs salary is equivalent to 80,000 + 1,000,000 = 1,080,000.

From this, it can be deduced that approximately 92% of Jacobs' salary is equivalent to Economic Rents. From the theoretical point of view, this makes sense, because the demand for designers (which is a highly qualified profession) is very inelastic, and the more inelastic the greater the proportion of Economic Rents as part of the salary. In the annexes, I show it graphically.

8 0
3 years ago
Beachside co. sells two products, skis and snorkels. last year beachside sold 12,600 units of skis and 23,400 units of snorkels.
Nimfa-mama [501]

Total No of Units=12600+23400

=36000 units

Ski=12600/36000=35%

Snorkel=23400/36000=65%

7 0
3 years ago
Alpha Computing is a U.S. company that specializes in IT research. It has formed a joint venture with Microchips Inc., a Belgium
hichkok12 [17]

Answer:

The answer is: A) strategic alliance

Explanation:

A strategic alliance is an agreement between two or more independent companies to participate in a mutually beneficial project. The companies share resources for this specific project while remaining independent in all their other business activities.

This is usually done to try to enter a new market or to develop a new product.

3 0
3 years ago
Read 2 more answers
For all of the following questions, refer to the following table, which gives financial information for Apple for fiscal year 20
taurus [48]

Answer:

a. 27.9%

Explanation:

The formula and the computation of the gross profit are shown below:

Gross profit = (Gross profit) ÷ (Sales) × 100

where,

Gross profit = $1,604

And, the sales revenue is $5,742

So, the gross profit is

= ($1,604) ÷ ($5,742) × 100

= 27.9%

By dividing the gross profit by the sales we can get the gross profit

3 0
3 years ago
To reconcile the number of physical units using the weighted average method of process costing, one must determine whether the u
Shkiper50 [21]

For one to be able to reconcile the number of physical units using the weighted average method of process costing, one must determine if the units were completed or still in process at the end of the period.

<h3>What is weighted average method?</h3>

The weighted average cost method is known to be a kind of process that tends to divides the cost of goods that is available using the sale by the number of units that is present for sale.

Conclusively, To find a weighted average, one has to multiply all the number by its weight, then add all the results together.

learn more about weighted average method from

brainly.com/question/26595359

8 0
1 year ago
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