The adjusting entry would be rent expense 1,000 / prepaid rent 1,000.
<h3>What is adjusting entry? </h3>
- In accounting/accountancy, adjusting entries are journal entries usually made at the top of an accounting period to expenditure and allocate income to the period in which they actually occurred.
- The revenue recognition principle is that the basis of making adjusting entries that pertain to unearned and accrued revenues under accrual-basis accounting.
- It is also known as Balance Day adjustments because they are made on balance day.
- Based on the matching principle of accrual accounting, revenues and associated costs are recognized within the same accounting period. However the particular cash may be received or paid at a different time.
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Answer:
Net Cash flow in year 4 $46,140<u>
</u>
Explanation:
Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.
Year 4 cash flow ;
$
Operating cash flow $58,500
Working capital recouped 4,950
Scrap value 6,090
Tax payable (40%*58500) <u>(23400
)</u>
Net Cash flow <u> 46,140
</u>
Hello! Payless Shoe Source is a chain of e. Specialty stores. This is the case because the store specializes in shoes.
Businesses collect demographic information on where people live, what they buy, and how they spend their time. Businesses collect demographic information on where people live, what they buy, and how they spend their time.
