your answer should be “B.”
mark me brainliest please!
Explanation:
The computation is shown below:
a. The current account balance equal to $44,400
b. The current account balance equal to
Since the company prepaid rent for two years is $44,400 but we have to compute four four months i.e from September 1 to December 31
We assume the books are closed on December 31
So, the current account balance is
= $44,400 - $7,400
= $37,000
The $7,400 is come from
= $44,400 × 4 months ÷ 24 months
= $7,400
c. And, the adjusting entry is
Rent expense A/c Dr $7,400
To Prepaid rent A/c $7,400
(Being rent expense is recorded)
The question that cannot be answered based on the information in the delivery truck data base is 2) What is the average number of customer deliveries made by each truck on a particular day?
<h3>Why can this question not be answered?</h3>
In order to answer this question, the number of customers that each truck delivered to during the day needs to be recorded.
The total number of deliveries will then be added up and divided by the number of trucks making deliveries.
The information on the number of deliveries made is not in the database so this question cannot be answered.
In conclusion, option 2 is correct.
Find out more on databases at brainly.com/question/518894.
B. Decreases
if demand goes down, nobody is buying anything, so the need to produce/manufacture is down
Answer:
S/N ACCOUNT DEBIT CREDIT
1 Equipment $22,000
Cash $22,000
Being payment for new component expected to increase the
equipment’s productivity by 10% a year
2. Equipment Repairs expenses $6,250
Cash $6,250
Being payment for equipment repair
3. Equipment $14,870
Cash $14,870
Being payment for equipment repair to prolong the useful life
the asset
Explanation:
The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.
Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.
The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is expected to increase the equipment’s productivity by 10% a year.
The $6,250 paid for normal repair is a revenue items which is to be expensed against the earning of that period.
The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.
