___ level jobs require no prior experience

On october 2016, sengal Company recorded a joumal entry debiting prepaid rent and crediting cash for $1,200 in payment for one y

DIA [1.3K]

Answer:

C. Expense $300 of the expense on the income statement.

Explanation:

The correct answer is C.

On 31 December 2016, Sengal Company should report Rent expense of $300 on the income statement.

The initial journal entry was:

Dr Prepaid rent $1, 200

Cr Cash $1, 200

This journal entry recognizes the prepaid rent as an asset to the company because the rent is paid in advance, and they have not yet made use of the property they are renting. The payment is an annual payment, meaning that it is for 12 months. Assuming that the end of the financial year is at 31 December 2016, we know that a portion of the $1, 200 is in excess.

The monthly rent expense is $1,200 / 12 = $100. This means that only $100 is the expense for each month. By 31 December, only $300 was the rent expense. [ $100 x 3]. Sengal Company had paid $900 [$1, 200 - $300] in advance and that $900 was to remain as an asset (prepaid rent). The $300 should be recorded as an expense in the income statement and removed as an asset from the balance sheet.

The subsequent journal entry to record the expense is:

Dr Rent expense $300

Cr Prepaid rent $300

At the end of the financial year [31 December 2016], all income statement accounts must be correctly accounted for. This is because all income and expenses are closed of at year end and are not carried forward into the next financial year. This is according to the GAAP principle of ‘Matching’ which states that all income and expenses should be matched to the correct year in which they occur.

7 0

3 years ago

When Sandra and Charles Givens were divorced, the court ordered a division of property and awarded Sandra $65,000. The award was

taurus [48]

Answer:

Yes, it is a binding contract.

Explanation:

A contract is a legal binding agreement between two or more parties at the court of law. The agreement could be in terms of money, services, right or duties between the parties involved.

Since a consent has been reached between the two parties before the judge, Charles would pay the sum in the stipulated manner. The acceptance of the offer of payment by Sandra made it a binding contract for Charles, so he is bound by this service until he pays the full amount to Sandra.

3 0

4 years ago

You have $256,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.1 percent, and Stock L

Valentin [98]

Answer: Investment in H = .4706($256,000)

Investment in H = $120,470.59

Investment in L = .5294($256,000)

Investment in L = $135,529.41

Explanation:

Investment in Stock H

Investment in Stock L

Here, the expected return of the portfolio and the expected return of the assets in the portfolio have been given and we're to calculate the dollar amount of each asset in the portfolio. So, we need to find the weight of each asset in the portfolio. Since the total weight of the assets in the portfolio must equal 1 (or 100%), we can find the weight of each asset as:

E[Rp] = .1230 = .141xH + .107(1 - xH)

xH = .4706

xL = 1 - xH

xL = 1 - .4706

xL = .5294

So, the dollar investment in each asset is the weight of the asset times the value of the portfolio, so the dollar investment in each asset must be:

Investment in H = .4706($256,000)

Investment in H = $120,470.59

Investment in L = .5294($256,000)

Investment in L = $135,529.41

8 0

4 years ago

Which of the following is considered a likely result from advertising? A. Brand names offer consumers no new information about p

Margaret [11]

Answer:

B) Signaling theory suggests that expensive testimonials from celebrities indicate a higher quality product.

Explanation:

In advertisement, signalling theory uses a biological approach that celebrities, which are seen as successful, wealthy, powerful, etc. transmit a sense of quality to the products that they endorse or recommend.

For example, Mr. T's breakfast cereal was very successful during the 1980s because customers identified Mr. T with being strong, healthy and powerful. Most people are usually followers, not leaders, and we like to follow our famous celebrities.

7 0

4 years ago

The demand for most products varies directly with changes in consumer incomes. Such products are known as Multiple Choice comple

olasank [31]

Answer:

The correct answer is letter "D": normal goods.

Explanation:

Normal Good is any good or service that sees its increase in demand as a result of an increase in income. Normal goods are defined as having an income elasticity coefficient of demand (percentage change in quantity demanded by the percentage change in price) which is lower than one (1) but is still a positive number.

Consumer staples such as food, drugs, beverages, and basic household products are considered normal goods.

7 0

3 years ago