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Natalka [10]
3 years ago
6

Three months of rent were prepaid on May 1 for $7,200, but two months have now expired, leaving only one month prepaid at June 3

0. What is the amount of rent expense that will be recorded in the related adjusting entry dated June 30?a- $0b- $2,400c- $4,800d- $7,200
Business
1 answer:
Dafna11 [192]3 years ago
7 0

Answer:

b- $2,400

Explanation:

The computation of the amount that should be recorded is given below:

= 3 months rent ÷ number of months

= $7,200 ÷ 3 months

= $2,400

Hence, the amount of rent that should be recorded is $2,400

Therefore the option b is correct

The same should be considered

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A car's price is currently $20,000 and is expected to rise by 4% a year. if the interest rate is 6%, how much do you need to put
kati45 [8]

Answer:

  • <u><em>$19,591.63</em></u>

Explanation:

<u />

<u>1. Calculate the price of the car in a year from now.</u>

This is add the 4% on the current price:

  • $20,000 × 1.04 = $20,800

<u />

<u>2. Calculate the amount of money that must be put aside to have $20,800 in a year:</u>

<u />

Use the formula of monthly compound interest, with 6% annual interest

  • r = 6% / 12 = 0.06/12 = 0.05
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  • P = $20,800 / (1 + 0.005)¹² = $19,591.63
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