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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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<h3 /><h3>What is capital?</h3>

Capital refers to the total amount of capital assets required to generate goods or services in a business. This amount can be used to start a business, manage daily operations of the business, or grow and extend it.

These institutions the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency help to provide small businesses with financial assistance in terms of capital and loans and provide training to manage things in the business.

Therefore, option D capital is the correct answer.

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5 0
2 years ago
If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 3 percent, then
trapecia [35]

Based on the real GDP growth rate, the velocity of circulation, and the quantity of money, the long run inflation rate will be 0%.

<h3>What is the long-run inflation rate?</h3>

This can be found using the Quantity theory of money:
Money supply x Velocity of circulation = Price level x Real GDP

Can also be written as:

% change in M + % change in V = % change in P + % change in Y

Solving gives:

3% + 0 = P + 3%

P = 3% - 3%

= 0%

The price level is to increase by 0% which means that inflation is 0%.

Find out more on the Quantity theory of money at brainly.com/question/26370040.

7 0
2 years ago
On July 1, 20X9, Link Corporation paid $340,000 for all of Tinsel Company's outstanding common stock. On that date, the costs an
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Answer:

Goodwill = 25,000

Explanation:

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3 years ago
Maria purchased 100 shares of JAX stock for $30 per share and sold this same stock one year later for $29 per share. She paid co
mihalych1998 [28]

Answer:

capital loss = ($195)

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4 0
3 years ago
Brianna, a salesperson for Cosmetics Corporation, learns that Cosmetics will increase the dividend it pays to shareholders. Bria
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Answer:

traded on information that was not available to the public.

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3 years ago
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