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Scorpion4ik [409]
3 years ago
5

Gamma Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare th

e required adjusting entries at December 31:
1. A one-year bank loan of $720,000 at an annual interest rate of 6% had been obtained on December 1.
2. The company's pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. Employees earn a total of $12,800 per week.
3. On December 1, rent on the office building had been paid for three months. The monthly rent is $7,000.
4. Depreciation of office equipment is based on an estimated useful life of five years. The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year.
5. All fees totaling $19,800 were earned during the month for clients who had paid in advance.

What should be the balance of the Prepaid Rent?

a. $0
b. $7,000
c. $14,000
d. $21,000
Business
1 answer:
Tresset [83]3 years ago
7 0

Answer; c. $14,000

Explanation

On December 1, rent had been paid for 3 months. At a rate of $7,000 a month this will come to;

= 7,000 * 3

= $21,000

The Prepaid rent account will reduce every month by the rent due for that month. The balance on the Prepaid account as at December 31 will therefore have reduced by one month from December 1.

= 21,000 - 7,000

= $14,000

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Answer:

a. tragedy of the commons

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Based on the scenario being described within the question it can be said that the fee system corrects a problem known as the tragedy of the commons. This term describes a specific situation in a shared-resource system in which individuals go against the common good by depleting the shared resources through their collective actions in order to benefit their own self-interests.

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ch4aika [34]

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3 years ago
E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the v
bulgar [2K]

Answer:

b. $1.87

Explanation:

Number of order taking costs = $20,592

Number of orders = 187,200

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= $20,592 ÷ 187,200

= $0.11

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8 0
2 years ago
Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2. Year 2
swat32

Answer: 3.39

Explanation: Current ratio can be defined as a liquidity ratio which is used by the accountants the evaluate the ability of the company to pay its short term obligations. It can be computed as follows :-

current\ ratio=\frac{curret\ assets}{current\ liabilities}

where,

current assets = $38,500 + $100,000 + $90,500 + $126,000 + $13,100 = $368,100

current liabilities = $108,400

now putting the values into equation we get :-

current\ ratio=\frac{368,100}{108,400}

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3 years ago
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Tasya [4]

Answer:

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3. The relationship between online and visits - Many to many

4. The relationship between Visits and satisfaction - Prototype

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The relation ship with customer is often one to one. The customers are required to fill the satisfaction surveys which enable the business to understand their value in the eyes of its customers and try to improve their level of service to their customers. The customer satisfaction is important for any business as the satisfied customer may bring more customers.

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