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EleoNora [17]
3 years ago
12

Due to the terms of its​ lease, ​Services, Inc., pays the rent for its new office space in one annual payment of on ​1, . The le

ase covers the period of ​1, ​, through ​31, . Services has a​ year-end of 31. Assume that Services had no other prepaid rent​ transactions, nor did it have a Prepaid Rent beginning balance in . Give the journal entries that Services would make for​ (a) the annual rent payment of on 1 and​ (b) the adjusting entry for rent expense on ​31, . What is the balance of Prepaid Rent at ​31, ​?
Business
1 answer:
hichkok12 [17]3 years ago
5 0

Answer:

a.

August 31

DR Prepaid Rent .........................................................$21,000

CR Cash.........................................................................................$21,000

(To record Prepaid rent)

b.

December 31

DR Rent.........................................................................$8,750

CR Prepaid Rent .........................................................................$8,750

(To record prepaid rent recognized)

Working

= $21,000 * 5/12 (August to December)

= $8,750

c. Balance in Prepaid rent;

= 21,000 - 8,750

= $12,250

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Mademuasel [1]

Answer:

The WACC will be 10% for average risk

below when the risk is low

and above 10% when the risk is higher than average

as the cost of capital (required return from the stockholders) will increase pushing the WACC higher

Explanation:

As the WACC is composed by the cost of debt and the cost of equity a higher risk will require a better return for the investor thus, the equity proportion that determinates the WACC will change along the project risk.

6 0
3 years ago
How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold? quest
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<span>how would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold ? C) The supply of smartphones would decrease. Excise taxes are based on the quantity of an item and not on its value. For example, the federal government imposes an excise tax of 18.4 cents on every gallon of gas purchased, regardless of the price charged by the seller. States often add an additional excise tax on each gallon of fuel. so, government will charged 5.00$ excise tax on smartphone will affected supply of smartphones would decrease.</span>
8 0
3 years ago
A chemical reactor gives a fractional conversion of only 10% of the expensive limiting reactant in the feed stream. Assuming not
slavikrds [6]

Answer:

Explanation:

A) install a SEPARATION unit on the output from the reactor and feed the unreacted reagents back to the reactor feed in a RECYCLE stream.

B) Even if one had a perfect separation unit, the 65% or reactant which went to undesirable side reaction is wasted. Recycle is not effective to help poor selectivity of the reactor.

7 0
3 years ago
Cambridge Co. uses the allowance method. During January 2019, Cambridge writes off a $640 customer account balance when it becom
yan [13]

Answer:

The correct answer is option (a).

Explanation:

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

Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.

Here, both accounts are or balance sheet items.

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Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YT
IrinaVladis [17]

Answer:

the current bond price is $1,147.20

Explanation:

The computation of the current bond price is shown below:

Given that

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Here we assume the future value be $1,000

The formula is shown below:

= -PV(RATE,NPER,PMT,PV,TYPE)

After applying the above formula, the current bond price is $1,147.20

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