1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mariana [72]
2 years ago
6

Assume that on November 1, 2019, a 3-month rent payment for $8,000 per month (for a total of $24,000) was made with respect to a

lease that the company entered into on that date as a tenant. The company took occupancy of the rented space immediately. The lease term will expire on January 31, 2020. The $72,000 payment was recorded as a debit to Prepaid Rent on November 1, 2019.
Required:
a) The adjusting entry on December 31, 2019, is as follows _________.
Business
1 answer:
ziro4ka [17]2 years ago
7 0

Answer:

a)

Rent Expense   Dr.$16,000

Bank                  Dr.$48,000

Prepaid Rent     Cr.$64,000

Explanation:

The company entered into lease on 1st November 2019 with rent of $8,000 per month. the company on 1st November 2019 recorded prepaid rent as follows; which is wrong

Prepaid Rent Dr. $72,000

Bank              Cr. $72,000

This is wrong entry as prepaid rent was overstated by ($72,000-$24,000 ) $48,000 and same like bank was understated by $48,000

The correct entry should have been like this as on 1st November 2019;

Prepaid Rent Dr. $24,000

Bank               Cr. $ 24,000

By 31st December 2019, two months rent have already accrued so prepaid rent should be credited by (8000*2+48,000 for additional amount recorded)

<em>So the rectifying entry is; as on 31st December 2019</em>

<em>Rent Expense   Dr.$16,000</em>

<em>Bank                  Dr.$48,000</em>

<em>Prepaid Rent     Cr.$64,000</em>

You might be interested in
Budgeted material-handling costs are $50,000. The material-handling cost per wall mirror under ABC is: $2,000. $1,000.
zlopas [31]

Answer:

the  material handling cost per wall mirror is $500

Explanation:

The computation of the material handling cost per wall mirror is as follows;

= Budgeted material-handling costs ÷ material moves × moves ÷ number of wall mirrors

= $50,000 ÷ 20 × 5 ÷ 25

= $500

Hence, the  material handling cost per wall mirror is $500

The same is to be considered

4 0
2 years ago
Yael just turned 18 and has started getting money from her grandmother. For the next decade, payments will come in on a regular
FinnZ [79.3K]
B because it comes on a regular basis
4 0
2 years ago
Describe three ways that globalization is having a negative impact on the environment
Alchen [17]

pollution

building up in countryside

over population

5 0
3 years ago
Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a.
matrenka [14]

Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes 4)Merchandise Inventory.

Product vending is the practice of intentionally promoting, showing, and promoting the goods in your keep. A huge part of this is visual merchandising—the process of making plans, designing, and showing merchandise to focus on their capabilities and advantages.

Merchandising is the exercise and procedure of displaying and selling merchandise to clients. Whether or not digital or in-save, stores use vending to persuade clients' motives and reach their sales goals.

Vending approach selling merchandise to retail customers. Merchandisers, also known as retailers, buy merchandise from wholesalers. Manufacturers, upload a markup or gross earnings quantity and sell the products to customers at a better rate than what they paid.

Disclaimer: The question is incomplete. Please read below to find the missing content.

Question: Under the perpetual inventory system, all purchases of merchandise are debited to the account

1)Cost of Merchandise Available for Sale

2)Cost of Merchandise Sold

3)Purchases

4)Merchandise Inventory

Learn more about merchandise here brainly.com/question/27046371

#SPJ4

3 0
1 year ago
Name at least two primary forms of identification needed to obtain a learners license
Elza [17]
Two primary forms you could use would be 1. Birth certificate and 2. Social security card.
4 0
2 years ago
Other questions:
  • Overspending can keep you from achieving your goals <br> true or false
    15·2 answers
  • Brand differences are worth promoting if they satisfy certain criteria. What are these criteria? Briefly describe each of them.
    14·1 answer
  • The law of comparative advantage indicates thata. specialization and exchange will permit trading partners to maximize their joi
    5·1 answer
  • True or false: Managerial accounting provides information to internal managers who make decisions about a company's business act
    5·1 answer
  • Jefferson Cleaning signed an agreement with Willis Company on December 15 to provide cleaning services every Friday. The service
    9·1 answer
  • Electronic Wonders reports net income of $96,500. The accounting records reveal Depreciation Expense of $50,200 as well as incre
    8·1 answer
  • Which of the following is a tactic for the strategy of training customer-service staff to reach the goal of improving this year’
    12·1 answer
  • If the labor force averaged 237 million in 2008–2011, by how much in percentage terms did the state and local layoffs described
    6·1 answer
  • Gato Inc. had the following inventory situations to consider at January 31, its year-end. (a1) Identify which of the following i
    10·1 answer
  • An example of contractionary fiscal policy would be:
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!