Answer:
Rent expense (Dr,) $9,800
Prepaid Rent $9,800
Explanation:
The accrual concept of accounting requires us to record the expenses in a period in which they are incurred rather than when cash is paid. When the company paid advance rent of six months at the end of October, it will record a current asset (Unexpired resource) on the face of balance sheet. At the end each accounting period, it is required to expense out the resources (benefits) that are expired (utilized). This can be done through straight-line method. So, on December 31, 2019, the rent expense of two months that is of November and December should be charged to profit and loss statement in-order to record the expense of related period.
<u>Workings</u>
Rent expense per month = 29,400 / 6 = $4,900.
⇒ Rent expense of two months = 4,900 * 2 = $9,800.
This amount should be written off and the required adjusting entry is:
Rent expense (Dr,) $9,800
Prepaid Rent $9,800
Answer:
The sector which is registered and follows government rules and regulations, having employees and employee unions is called as an organised sector. ... The sector that comprises of small-scale enterprises or units and is not registered with the governmen
Answer:
e. Merchandise Inventory Debit 19,982
Accounts Payable Credit 19,982
Explanation:
In a perpetual inventory system, the inventory account is used to record purchases and cost of goods sold. Inventory counts are conducted on periodic basis and the inventory quantities are matched with inventory records and any differences are adjusted.
Since Morgan Inc. also uses the net method to record purchases, any discounts allowed are considered to have been received.
In this question, the terms are 3/10, n/30 which means that a 3 % discount is allowed on payment within 10 days and if not then the payment has to be done within 30 days.
Considering a 3 % discount on the purchase value of $ 20,600, the entry to be recorded shall be at a value of $ 19,608 (20,600-618)
Answer:
In the following situation:
Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000.
The Jacob's contribution per unit is:
e) 80
Explanation:
To understand this answer we need to explain a few things. First of all, te contribution unit concept is used to express, identify, or define the net profit after one unit has been sold and all the expenses have been subtracted from it. The formula to obtain it is: (Total revenues- Total Variable costs) divided by total units. Following this information we have.
Total revenue is: 100 USD per night
Total variable costs are: 20 USD per night
Total units are only one.
Therefore 80 USD is our contribution per unit.
Answer:
Return on the investment = 10.8%
Explanation:
<em>The return on a stock is the sum of the capital gains(loss) plus the dividends earned.</em>
<em>Capital gain is the difference between he value of the stocks when sold and the cost of the shares when purchased.</em>
Total shareholders Return =
(Capital gain/ loss + dividend )/purchase price × 100
So we can apply this to the formula:
Dividend = 1.8 × 340= $612
Capital gain = (83.54-77.03)× 340 =$ 2213.4
Cost of shares = 340 × 77.03= $26,190.2
% return = (612 + 2213.4)/ 26,190.2 × 100
= 10.8%
