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sasho [114]
3 years ago
15

The balance in the prepaid rent account before adjustment at the end of the year is $16,212, which represents 6 months' rent pai

d on December 1. The adjusting entry required on December 31 is to:____.a. debit Rent Expense, $12,000; credit Prepaid Rent $12,000.b. debit Prepaid Rent, $6,000; credit Rent Expense, $6,000.c. debit Rent Expense, $6,000; credit Prepaid Rent, $6,000. d. debit Prepaid Rent, $12,000; credit Rent Expense, $12,000.e. none of these answers are correct.
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
3 0

Answer: e. none of these answers are correct.

Explanation:

Going by the accrual basis in Accounting, expenses should be recorded only when incurred.

Rent expense for the year therefore will be the rent incurred for the year which is for the month of December alone in this question as the rent was paid on December 1.

The rent for December will be deducted from the Prepaid expense account.

Rent per month is;

= 16,212/6

= $2,702 per month

Correct entry will be;

Date               Details                                                     Debit               Credit

Dec. 31           Rent Expense                                        $2,702

                       Prepaid Rent                                                                   $2,702

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Heavy Metal Corporation is expected to generate the following free cash flows over the next five years.
mezya [45]

Answer:

Enterprise value of Heavy Metal= $1,080.766

Share price =  $18.945 per unit

Explanation:

<em>The value of a firm is the present value of the free cash flow discounted at the weighted average  cost of capital</em>

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1        52.1 × 1.14^(-1)      = 45.70175439

2        68.6 × 1.14^(-2)  = 52.40073869

3          78.6 × 1.14^(-3) = 53.05276117

4         74.4×  1.14^(-4) = 44.05077264

5          81.1 ×  1.14^(-5) = 42.12079868

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Total value =   45.70+ 52.40+53.052 + 44.050 +42.120+  843.44 = 1080.766826

Enterprise value of Heavy Metal= $1,080.766

Share price = Total value - Debt value / number of shares

=  (1,080.766  - 304 )/ 41 million units= $18.945 per unit

Share price =  $18.945 per unit

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3 years ago
You write one JNJ February 70 (strike price) put for a premium of $5. Ignoring transactions costs, what is the break-even price
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Answer:

$65

Explanation:

The computation of the break even price for this position is shown below:

Break even price is

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= $70 - $5

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Calculation of total number of budgeted direct labor hours for the year:


It is given that Martin manufactures two garden products. These products each require four direct labor hours (dlh) to manufacture. Each product is budgeted for 2,500 units of production for the year.

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