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3 years ago

Assume that cash is paid for rent to cover the next year. The appropriate debit and credit are:

Business

1 answer:

vitfil [10]3 years ago

4 0

Answer:

The correct answer is letter "B": Debit Prepaid Rent, credit Cash.

Explanation:

Prepaid rent is the rent paid in advance. Usually, rent payments are made every month by the beginning of the month but other timeframes can also be agreed upon the lease. <em>Prepaid rent is debited to prepaid assets and credited to accounts payable. When the check for the payment is cut, accounts payable is debited and a cash account is credited.</em>

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At the end of its first year, the trial balance of Blossom Company shows Equipment $21,500 and zero balances in Accumulated Depr

faltersainse [42]

Answer:

The adjusting entry is shown below.

Explanation:

According to the scenario, the given data are as follows:

Estimated depreciation for year = $4,300

So, the adjusting entry for depreciation is shown below:

Adjusting Entry

Dec.31

Depreciation expense A/c Dr. $4,300

To Accumulated Depreciation-Equipment A/c $4,300

(Being the Depreciation expense is recorded)

7 0

3 years ago

Identify two to three factors that affect revenue, expenses, and profit in the business of the Super Bowl:

scoundrel [369]

Answer:

Revenue

Ticket Sales - The Super Bowl is one of the most watched sporting events in the world and people pay top dollar to be able to attend it in the stadium. In 2019 the lowest estimate of revenue coming from ticket sales was $65 million.
Television Rights - Networks pay to be able to broadcast the Super Bowl as it will bring in a lot of money for them from Ads. Fox, CBS and NBC are said to pay upwards of $2.5 billion every year to broadcast it.
Merchandising - Millions are made in revenue from the sales of merchandise leading up to and after the big game.

Expenses

Security - With so many people coming to the event, there has to be a provision for both private and public security. This means that Police will have to be paid for overtime and private firms will have to be paid their due.
Cleaning - The stadium will have to be cleaned before, during and after the event so cleaning expenses will cost a bit too.
Ad Hoc staff - There will be a need for people who will not have a specific job title but will still be needed to run around and embark on errands.

Profits

The profits will depend on how much revenues exceeds costs by so all the above listed factors can affect profit.

5 0

3 years ago

Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 1

Inessa05 [86]

Answer:

Gundy Company

Manufacturing Flexible Budget Report

For the Month Ended March 31, 2020

Budget Actual

Units produced 107,000 107,000

Variable Costs:

Direct Materials $428,000 $455,000 $27,000 U

($4 * 107,000)

Direct labor $749,000 $746,000 $3,000 F

($7 * 107,000)

Overhead $963,000 $971,000 $8,000 U

($9 ×* 107,000)

Total variable costs $2,140,000 $2,172,000 $32,000 U

Fixed Costs:

Depreciation $434,800 $434,800 $0

Supervision $108,700 $108,700 $0

Total fixed costs $543,500 $543,500 $0

Total costs $2,683,500 $2,715,500 $32,000 U

Workings:

Depreciation = (1,304,400 * $4) / 12 = $5,217,600 / 12 = $434,800

Supervision = (1,304,400 * $1) / 12 = $1,304,400 / 12 = $108,700

3 0

2 years ago

Suppose the multiplier is 5 and the government increases its purchases by $15 billion. Also, suppose the AD curve would shift fr

german

Answer:

A) 20 billion

Explanation:

Y = AD

= C + I + G

C = A + cY

A - Autonomous Consumption

c - MPC

Y = A + cY + I + G

Y - cY = A + I + G

Y(1 - c) = A + I + G

Y = (A + I + G)*1/(1 - c)

Taking derivative with respect to goverement purchase

dY/dG = 1/(1 - c)

( here d is represting del we are representing partial derivative.)

1/(1 - c) = Multiplier

dY = Multiplier*dG

= 5*15

= 75

75 = horizontal distance between AD1 & AD2

55 = horizontal distance between AD1 & AD3

Extent of crowding out = 75 - 55 = 20

Therefore, the Extent of crowding out is 20 billion.

3 0

3 years ago

The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary journal entr

ehidna [41]

Answer:

Given that,

Company's bank reconciliation at June 30 included interest earned = $150

So, it must be cash must be debited and interest revenue must be credited in the accounts.

Therefore, the journal entry is as follows:

Cash A/c Dr. $150

To Interest revenue $150

(To record the interest revenue earned)

7 0

3 years ago