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zvonat [6]
3 years ago
14

On November 1, 20X1, Starbucks paid the rent of $90,000 for 40 of its stores in Colorado and Nebraska. The rent covers the perio

d, November 1, 20X1 through March 31, 20X2. Assuming that Starbucks prepares quarterly financial statements, how much rent expense does Starbucks record on (i) November 1 and (ii) December 31?
Business
1 answer:
vazorg [7]3 years ago
8 0

Answer:

Part (1) November 1

The amount paid is the rental advances and must be recorded as advances which falls under the current asset category:

Dr Rental Advances $90,000

Cr        Bank account             $90,000

Part (2) December 31

On this date, some of the rental advances paid would be realized as expenses from the period November 1, 20X1 to December 31, 20X2.

This time duration constitutes to 2 months and the rental advance made on November were for five months. Out of these 5 months, 2 months share must be recognized as expense which is

The relevant entry would be:

Dr Rental Expenses $36,000

Cr                Rental Advances $36,000

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A. - True. 

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6 0
3 years ago
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Multinational financial management requires that
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Answer:

business finance finance questions and answers multinational financial management requires that answer the effects of changing currency values ...

question: multinational financial...

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multinational financial management requires that

answer

the effects of changing currency values be included in financial analyses.

legal and economic differences need not be considered in financial decisions because these differences are insignificant.

political risk should be excluded from multinational corporate financial analyses.

traditional u.s. and european financial models incorporating the existence of a competitive marketplace not be recast when analyzing projects in other parts of the world.

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3 0
3 years ago
Alpha Corporation has 1,500 shares of $40 par, 7% cumulative preferred stock, and 2,200 shares of $10 par common stock. Alpha pa
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Annual preferred dividend = 0.07*40*1500 =$4,200

Since there was a one year dividend arrears to preferred stock holders, the total amount that goes to preferred stockholders = 4,200 + 4,200 (arrears of previous years) = 8,400

So common stockholders received = 10,000-8,400 = $1,600 in dividends

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3 0
4 years ago
in industires where international competition is so fieerce and the costs of competing on a global basis are so high that only a
makvit [3.9K]

Answer:

D) joint venture

Explanation:

A joint venture refers to a situation where two companies will join together to form a third independent entity that operates in a specific market or develops specific products. The companies only work together to form the joint venture, but the rest of their operations remain separate from each other.

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8 0
3 years ago
Assume the equilibrium price for a good is $10. If the market price is $5, a:_____________
stellarik [79]

Answer:

c. Shortage will cause the price to rise toward $10

Explanation:

c. Shortage will cause the price to rise toward $10

The equilibrium price is $10 this any price below the equilibrium price will create a shortage in the market because at price lower than equilibrium price, the demand is greater than the supply. Thus, shortage will push the prices upwards or towards equilibrium price.

6 0
3 years ago
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