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sergey [27]
3 years ago
14

On October 1, Company B records 1 year of prepaid rent in an income statement account then adjusts for the unexpired prepaid ren

t at the end of the period. What would be true for Company B's financial statements at December 31 year-end?
Business
1 answer:
trasher [3.6K]3 years ago
6 0

Answer:

The first journal entry was not the most appropriate, but since the mistake was correctly adjusted at the end of the year, both assets and expenses will be the same whether they did it correctly the first time or they had to adjust a mistake at the end of the year.

E.g. something like this happened

October 1, rent expense for 1 year

Dr Rent expense 12,000

    Cr Cash 12,000

December 31, adjustment to rent expense

Dr Prepaid rent 10,000

    Cr Rent expense 10,000

they should have recorded it as:

October 1, prepaid rent for 1 year

Dr Prepaid rent 12,000

    Cr Cash 12,000

December 31, adjustment to rent expense

Dr Rent expense 2,000

    Cr Prepaid rent 2,000

Whichever way you recorded the transactions, the balances a the end of the year would be:

prepaid rent (asset) $10,000

rent expense (expense) $2,000

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Your stockbroker executed the following trades for your account: • 50 shares of Kaiser Aluminum at $104 a share • 100 shares of
katrin2010 [14]

Answer:

$46.51

Explanation:

The weighted arithmetic mean can be defined as:

M = \frac{n1P1 + n2P2 +n3P3}{n1 +n2+n3}

Where n is the number of shares and P is the share price, then:

M= \frac{50*104 + 100*25.25+ 20*9.125}{50+100+20} \\ M= \frac{7907.5}{170}\\M= 46.514

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4 0
3 years ago
Forms of Business Organization
chubhunter [2.5K]

Answer:

<h2>Forms of Business Organization </h2>

1. The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a firm's legal structure affects its operations.

The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs). In terms of numbers, most businesses are______proprietorships_. However, based on the dollar value of sales, most business is done by_corporations____.

Businesses are frequently started as__Limited Liability Companies____and then converted to_Corporations_____when their growth results in disadvantages outweighing advantages.

2. A proprietorship has three important advantages: (1) It is easily and inexpensively formed, (2) it is subject to_less____government regulations, and (3) it is subject to lower income taxes than are_corporations_____.

However, a proprietorship also has three important limitations: (1) A proprietor has_unlimited_____personal liability for the business' debts. (2) The life of the business is limited to the life of the individual who created it. (3) A proprietorship has difficulty obtaining large sums of capital so proprietorships are used primarily for small businesses.

3. A partnership has two important advantages: (1) It is easily and inexpensively formed and (2) its income is allocated on a pro rate basis to partners and taxed on a(n)_individual____basis so the partnership avoids higher_corporate____income taxes. A partnership has four important disadvantages: (1)_Unlimited_____personal liability, (2)_Limited____life, (3) difficulty of transferring ownership, and (4) difficulty of raising large amounts of capital.

4. A corporation has the following advantages: (1)_Unlimited____life, (2) ownership that is easily transferred through the exchange of stock, (3)_Limited____liability, and (4) can_easily_____raise large amounts of capital to operate large businesses. Its disadvantages are: (1) Corporate earnings may be subject to_corporate_____taxation and (2) setting up a corporation and filing required state and federal reports is complex. Large corporations are known as C corporations. However, as an aid to small businesses Congress created S corporations.

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6 0
3 years ago
An amortized loan: Multiple Choice requires the principal amount to be repaid in even increments over the life of the loan. may
babymother [125]

Answer:

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Explanation:

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In amortized loans the interest is paid off first then the amount excess of interest reduces the principal. A common example of amortized loans is auto loans, home loans.

The payments for amortized loans can be equal or unequal for each period.

7 0
3 years ago
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3 years ago
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