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Olenka [21]
1 year ago
5

On October 1, Year 1, Jason Company paid $7,200 to lease office space for one year beginning immediately. What is the amount of

rent expense that will be reported on the Year 1 income statement and what is the cash outflow for rent that would be reported on the Year 1 statement of cash flows?
Business
1 answer:
victus00 [196]1 year ago
6 0

Answer:

The amount of rent expense that will be reported on the Year 1 income statement is $1,800 .

The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $5,400.

Explanation:

Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.

The duration of the payment is 12 months, hence  

Monthly amortization = $7,200/12 = $600

Rent expense for year 1 = $600 × 3 = $1,800

The ending balance in the prepaid rent account will be  

= $7,200 - $1,800

= $5,400

This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.

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If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?
PolarNik [594]

Dividend is the amount of share in the earnings paid by the company to its shareholders for their investment in the company. So dividend is paid out of the earnings made by the company and it has no relation with the increase or decrease in the value of the stock.

Hence, If a company pays dividends on a stock, it does not mean that the stock has appreciated in value.


4 0
2 years ago
Read 2 more answers
Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount). What can we conclude abo
klasskru [66]

Answer:

If both demand and supply increase by the same amount, the output level will increase while price will remain same.

If increase in demand is greater than increase in price then price and output both will increase.

If increase in supply is greater than increase in demand, price will decline while output will increase.

Explanation:

The changes in the price and quantity of salsa depending on the degree of change in supply and demand. In case both the variables increase by the same proportion, the price will remain the same while quantity will increase.

In case the increase in demand is more than increase in supply it would cause the price to increase because of excess demand. At the same time, the quantity will increase as well.

In case the increase in supply is more than increase in demand, the price will fall due to excess supply. The output will increase as well.

3 0
2 years ago
Pleasantville maintains an appropriations ledger for police department supplies. The amount appropriated for supplies was $100,0
satela [25.4K]

Answer:

Appropriation available for spending = 37000

Explanation:

In the appropriations ledger, the amount available for spending at any moment is the total appropriation minus expenditures plus outstanding encumbrances.

100000 - 35000 - 28000 =  37000

3 0
2 years ago
Of the value creation activities in a company, which of the following is concerned with the design of products and production pr
Leni [432]
The value creation activities that deals with the design of products and production process is RESEARCH AND DEVELOPMENT.
Value chain activities are those activities that are put in place in order to create a product and get it to the final consumers. The series of activities involves include: research and development, production, marketing and sales and customer service.
3 0
1 year ago
Read 2 more answers
Blacken Company manufactures motorcycles. The company's management accountant wants to calculate the fixed and variable costs as
Alex

Answer:

fixed cost = 11.026,6

Explanation:

we will use the High-Low method to sovle for variable and fixed component of utilities:

We subtract the high form the low

\left[\begin{array}{ccc}High&2710&34712\\Low&2200&30255\\Diference&510&4457\\\end{array}\right]

510 hours generates 4,457 cost in utilities.

so variable cost:

4,457 / 210 = 8.74

Then we solve for fixed cost:

total cost = variable cost x Q + fixed cost

34,712 = 8.74(2,710) + fixed cost

fixed cost = 11.026,6

6 0
2 years ago
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