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Scorpion4ik [409]
4 years ago
9

On May 1, 2021, Cedar Corp. paid $432,000 for rent on warehouse space one year in advance. On November 1, 2021, Cedar Corp. ente

red into a lease agreement to rent out its old warehouse space it was no longer using. This agreement calls for Cedar to receive $10,000 per month from the lessee, due and payable at the end of the 5-month lease term. At December 31, 2021, none of the rental payments from the lessee had yet been received. If Cedar makes the appropriate adjusting entry, how much will be reported on the December 31, 2021 income statement for rent expense?
Business
1 answer:
lorasvet [3.4K]4 years ago
4 0

Answer: $324,000

Explanation:

Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.

The rent will therefore have to be apportioned to the months that it has paid for in the current period.

Rent for year = $432,000

Rent for month = 432,000/12 = $36,000

April - December = 9 months

Rent for the year = 9 * 36,000

= $324,000

Note; <em>Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received. </em>

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Pasadena Candle Inc. projected sales of 63,000 candles for January. The estimated January 1 inventory is 3,200 units, and the de
Llana [10]

Answer and Explanation:

The Preparation of production budget report in units is shown below:-

                                     Pasadena Candle Inc.

                                Production budget report

                                For the year ended Jan 31

Particulars                       Units

Expected units to be sold 63,000

Add: Desired ending inventory,  Jan 31 6,000

Total units available 69,000

Less: Estimated beginning inventory,  January 1 -4,300

Total units to be produced 64,700

Therefore we simply deduct the Estimated beginning inventory, Jan 1 from total units available to reach the total units to be produced

6 0
3 years ago
A guest calls to make a reservation. She tells you her friend made a reservation for $315 versus the $350 you are quoting as a r
RideAnS [48]
<span>The situation should be handled by speaking in a calm, yet firm tone of voice. The customer should be told the rates for rooms at the hotel, as well as any charges that may occur for cancelling. If the customer still isn't satisfied, she should be transferred to the manager for further explanation.</span>
3 0
3 years ago
The interval at which an asset should be replaced to minimize cost (or maximize worth) is known as the: ________
madam [21]

Answer:

c. Optimum replacement interval (ORI)

Explanation:

Optimum replacement interval used to estimate the most cost effective time to replace an asset on the basis of their replacement cost.

There needs to be a balance between the replacement cost and the value that is being lost by changing the asset.

The useful value must be low to justify replacement cost.

For example if the cost of maintaining a machine has increased a lot as a result of wear and tear, it will be more cost effective to make a replacement in order to minimise cost and increase efficiency

3 0
4 years ago
At the beginning of the year, the Finance Committee and the Planning Committee of a certain company each had n members, and no o
Alexus [3.1K]

The ratio of the total number of members who left at the end of the year to the total number of members at the beginning of the year was 1:6.

There were 24 members on the Finance Committee at the beginning of the year.

Explanation:

We are given that at the beginning of the year, the Finance Committee and the Planning Committee of a certain company each had n members, and no one was a member of both committees. At the end of the year, 5 members left the Finance Committee and 3 members left the Planning Committee.

First, we see that the total number of members of both committees at the beginning of the year is 2n. Also, since 5 members left the Finance Committee, the number of members who are on the Finance Committee at the end of the year is n – 5 and since 3 members left the Planning Committee, the number of members who are on the Planning Committee at the end of the year is n – 3.

We need to determine the value of n.

Considering the Statement  in the question

The ratio of the total number of members who left at the end of the year to the total number of members at the beginning of the year was 1:6.

We know that a total of 8 individuals left the committees at the end of the year. Using the information in statement one we can set up the following equation:

(number of members who left)/(members at the beginning)

8/(2n) = 1/6

Cross-multiplying, we obtain:

48 = 2n

24 = n

Thus, there were 24 members on the Finance Committee at the beginning of the year.  

4 0
4 years ago
Find the duration of a 5% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity
lidiya [134]

Answer:

2.8238 Years

Explanation:

Please see attachment

Download pdf
5 0
3 years ago
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