Pappy Corporation received cash of $36,000 on September 1,2017 for one year's rent in advance and recorded the transaction with
1 answer:
Answer:
debit Unearned Rent Revenue and credit Rent Revenue, $12,000.
Explanation:
Provided information we have,
Rent is received on 1 September 2017 for a period of 1 year on which it is accounted as Unearned Rent amounting $36,000.
Entry on that date would be
Cash A/c Dr. $36,000
To Unearned Rent $36,000
At the end of the year on 31 December 2017, we have period of current year lapsed = 1 September to 31 December = 4 months.
Thus rent income for the year = $36,000 = $12,000
Therefore this rent of $12,000 will be recognized as rent income for the year 2017.
Entry will be
Unearned Rent A/c Dr. $12,000
To Rent Revenue $12,000
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Answer:
CPI for the current year = 200
Explanation:
Given;
Contents in market basket
20X, 30Y, and 50Z
The current-year prices for goods
X = $2
Y = $6
Z = $10
The base-year prices are
X = $1
Y = $3
Z = $5
Now,
Total cost of market basket in the current year
= ∑ (Quantity × Price)
= 20 × $2 + 30 × $6 + 50 × $10
= $40 + $180 + $500
= $720
Total cost of market basket in the base year
= ∑ (Quantity × Price)
= 20 × $1 + 30 × $3 + 50 × $5
= $20 + $90 + $250
= $360
also,
CPI for the current year =
or
CPI for the current year =
or
CPI for the current year = 200