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inn [45]
3 years ago
12

On June 1, Norma Company signed a 12-month lease for warehouse space. The lease requires monthly rent of $550, with 4 months pai

d in advance. Norma Company records the payment by debiting Prepaid Rent $2,200 and crediting Cash $2,200. At the end of June, what should be the balance of Norma's Prepaid Rent account
Business
1 answer:
Sati [7]3 years ago
7 0

Answer:

Balance = $1,650

Explanation:

As Norma company has paid 4 months rent in advance, therefore at the end of June, norma company will record its 1-month expense as follows

Adjusting entry at the end of June would be

                             DEBIT       CREDIT

Entry

Rent Expense     $550

Prepaid Rent                         $550

The balance on Norma's prepaid expense would be

Prepaid Rent  = $2200

Rent Expense = ($550)

Balance = $1,650

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UNO [17]

Answer:

$28,240

Explanation:

Total sales = $334,000

Variable cost:

Sales commissions = $334,000 × 6%

                                = $20,040

Total fixed costs = Sales manager's salary + Advertising expenses

                            = $5,300 + $2,900

                            = $8,200

Total selling expenses = Total variable cost + Total fixed cost

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Therefore, the total selling expenses to be reported on the selling expense budget for the month of February is $28,240.

5 0
3 years ago
A monopolist maximizes profits by:
klemol [59]

Answer:

c) by setting MR(q)=MC(q) at a q for which p(q) is at least AVC(q)

Explanation:

Profit is maximised at MR= MC and price is greater than MC for monopoly.

6 0
3 years ago
A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. B
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company B has the greater operating leverage

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A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.

The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.

Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.

Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.

Learn more about operating leverage with the help of given link:-

brainly.com/question/6238482

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3 0
1 year ago
In the context of mobile marketing, ________ are released by businesses to help consumers access more information about their co
Irina-Kira [14]

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Customers can easily gain access to information about the company on their app and can also interact with the company through their app.

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7 0
3 years ago
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