10.5 Rent was paid quarterly in advance on 1 January, April, July, and October each year.FFA/FA FINANCIAL ACCOUNTINGwasUntil 30 June 20X3From 1 July 20X3$8,400 per year$12,000 per yearRent receivableStatement of financial position$9,900$9,900$10,200$9,900of $2,000 in sundry payables$1,000 in sundry payables$1,000 in sundry payables$2,000 in sundry receivables(2 marks)$60,000 per year to $72,000 per year as from 1 October 20X3.What figure should appear for rent expense in the business's statement of profit or loss and ounercomprehensive income for the year ended 31 July 20X4?$69,000$62,000$70,000$63,000C0.6 One of the products a garage sells to motorists is diesel fuel. Diesel fuel in inventory at 120X7 was $12,500, and there were invoices awaited for $1,700. During the year to 31diesel fyel invoices of $85,400 were paid, and a delivery worth $1,300 had yet to be in

Statement of profit or loss is defined as the one of the major financial statement prepared at the…

Answered: 10.5 | bartleby

Business

Accounting

10.5

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 7EA: Homeland Plus specializes in home goods and accessories. In order for the company to expand its...

See similar textbooks

Related questions

Q: You go nuts shopping at Target and grab items totaling $278 Tax is 3% You realize you left your 15% ...

A: Discount refers to the amount deducted from the selling price of a product. Discount is either deduc...

Q: Pro Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 1...

A: Direct material cost varianceDMCV=AC-SC×AQ=$1.35-$1.40×142,000=-$7,100Favorable Direct labor cost ...

Q: Sage Hill Inc. began work on a $10,700,000 non-cancellable contract in 2020 to construct an office b...

A: Journal entry: It is prepared to record the financial and non financial transaction of the business ...

Q: Assume that Lito Maria has a basic monthly income of 65,980. His company provides the following bene...

A: A withholding tax is an amount that an employer withholds from employees’ wages and pays directly ...

Q: The standard costs and actual costs for direct materials for the manufacture of 1,870 actual units o...

A: Direct Material quantity variance = (Actual quantity used - Standard quantity allowed)*Standard rat...

Q: From the accounts receivable ledger, prepare a schedule of accounts receivable for Robinson's Auto S...

A: Accounts Receivable Schedule: It is a report showing the list of customers along with the amount rec...

Q: Management of the Crane Company would like the Food Division to transfer 11000 cans of its final pro...

A: The minimum transfer price is equivalent to the marginal cost of manufacturing one product. The incr...

Q: Accounting Question

A: When lower of cost or NRV is applied to each item, then each item shall be seen and when it is appli...

Q: In detail please

A: When income received in advance then such amount should be treated as Income received in advance and...

Q: The first processing department of BAKAL CO., the Welding Department, started the month with 18,000 ...

A: Units started and completed = Units completed and transferred - beginning work in process inventory ...

Q: The applied overhead of Kayamoto company for the year is P2,496,000 based on 260,000 labor hours. If...

A: Applied overhead rate: Applied overhead rate=Applied overheadLabor hours=P 2,496,000260,000=P 9.6

Q: During the year ended December 31, 2018, Kelly’s Camera Shop had sales revenue of $170,000, of which...

A: Ending Allowance for Doubtful Accounts = Beginning Allowance for Doubtful Accounts + Bad debts expen...

Q: Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following o...

A: Activity cost drivers includes those activity through which the cost of an activity can be impacted...

Q: Refer the attached Case Study to solve, Enrico has planned to have $40,000 at the end of 10 years to...

A: Bank loan:Bank loan can be defined as the amount of money borrowed from the bank. Bank loan is repai...

Q: What's does the workers owe to the firm from an ethical perspective?

A: Meaning of Ethics The word ethics is derived from Greek work “ethikos” which means character which i...

Q: Consider the following information available for Barium Company: Total fixed costs $1,440,000 C...

Q: Paulina Morales, a single taxpayer, had wage income of $68,950 in 2019. Her only other income was or...

A: Given that, Paulina Morales is as single tax payer wage income = $68950 Her only other income = ordi...

Q: For each of the following transactions, events, or circumstances, indicate whether the r...

A: a) Since the order has been received, and the work relating to the sale is incomplete, the revenue s...

Q: Assume that the following was extracted from Massy’s accounting information system for operations at...

A: Introduction Gross profit method: gross profit method is the method of estimating amount in ending ...

Q: Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had beenpurchased at...

A: Given: Number of units = 500 Purchase price = $ 18 Selling price = $ 24

Q: Early in the year Debra Deal and several friends organized a corporation called Markup, Inc. The cor...

A: Note: Hi since no requirement is provided, after making necessary reference it is assumed the requi...

Q: Hunt Company is considering purchasing a competing company in order to expand its marketshare. Estim...

A: Goodwill is the difference between the total consideration paid for the fair value of the assets les...

Q: Quality, Inc. produced 1,000 units of the company's product in 2018. The standard quantity of direct...

A: Advantages in setting standards for cost: Helps in Master Budget Planning. Helps in establishing ...

Q: journal entry

A: Depreciation is the reduction in the value of asset over time due to normal wear & tear, passage...

Q: Indigo Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. ...

A: Carry forward of loss: The Federal Tax laws provide for carry forwarding business loss in case the b...

Q: Flint Corp. has a deferred tax asset account with a balance of $71,700 at the end of 2019 due to a s...

A: Deferred tax asset in 2020 = Cumulative temporary difference for 2020 x Tax rate = $428,900 x 20% = ...

Q: Bellingham Company produces a product that requires 8 standard direct labor hours per unit at a stan...

A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor time...

Q: During the current year, the following credit entries wereposted to the paid-in capital accounts of ...

A: There are two cases when Additional paid capital account is credited. Issue of shares at premium R...

Q: Besides accountants, which users do you think rely on journal and ledger records (e.g., managers, in...

A: Accounting is the procedure for recording, classifying, summarizing and interpreting the financial t...

Q: Wheelco, Inc., manufactures automobile and truck wheels. The company produces four basic, high-volu...

A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing fram...

Q: 5-2 Amherst Metal Works produces two types of metal lamps. Amherst manufactures20,000 basic lamps an...

A: Under Activity based costing, overhead cost is apportioned to the products on the basis of the cost ...

Q: Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars) 2020 2...

A: NOPAT stands for Net Operating profit after tax, which is defined as the after tax operating profit ...

Q: Nineteen Measures of Solvency and Profitability The comparative Financial statements of Bettancort I...

A: “Hey, since there are multiple requirements posted, we will answer first five requirements for you. ...

Q: Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-...

A: Common stock: Common stock can be defined as the security that represents the ownership in the stock...

Q: From inception of operations, Paramount Company provided for uncollectible accounts receivable under...

A: Bad debts can be referred to as the amount of accounts receivable which are written off due to their...

Q: Can an accountant's job be delivered from home or onsite at the office? Why?

A: Accountants work on various functions like financial accounting, management accounting, auditing etc...

Q: Concord Corporation can produce 100 units of a necessary component part with the following costs: ...

A: Make or buy decision is taken by the managers to chose the better option amongst the two; that is to...

Q: Income statement data for Bezos Company for the years ended December 31, 2014 and 2013, are as follo...

A: Horizontal analysis is prepared to show increase and decrease in amount by the line item. In this, c...

Q: A manufacturer incurs the following costs: $38,000 developing new techniques that will be pu shortly...

A: Answer: Option B is Correct i.e. $35,000.

Q: The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company an...

A: As you have posted multiple independent questions, we are answering the first two questions. Kindly ...

Q: 5-26 Activity-based costing, manufacturing. Decorative Doors, Inc., produces two types of doors, int...

A: since you have posted question with multiple subparts. we will solve first three subparts for you. t...

Q: INFORMATION SYSTEM CATEGORIZATION Classify the following item as either: TPS-Transaction Processing ...

A: TPS - Transaction processing system As the name itself suggest it basically supports transaction pro...

Q: Assume the aging of accounts receivable method was used by the company and that $7050 of the account...

A: Accounts receivable: It is a current asset of an organization. It is the amount due from customers ...

Q: The following are 10 technical accounting terms introduced or emphasized in Chapters 11 and 12:P/e r...

A: Here, given are some definitions. We have to identify the correct term for the definitions.

Q: Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear ...

Q: The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as follows...

A: We have the following information: (1st July, 20X3) Opening Balance: $240,000 (30th June 20X4) Clos...

Question

10.5

Rent was paid quarterly in advance on 1 January, April, July, and October each year.
FFA/FA FINANCIAL ACCOUNTING
was
Until 30 June 20X3
From 1 July 20X3
$8,400 per year
$12,000 per year
Rent receivable
Statement of financial position
$9,900
$9,900
$10,200
$9,900
of $2,000 in sundry payables
$1,000 in sundry payables
$1,000 in sundry payables
$2,000 in sundry receivables
(2 marks)
$60,000 per year to $72,000 per year as from 1 October 20X3.
What figure should appear for rent expense in the business's statement of profit or loss and ouner
comprehensive income for the year ended 31 July 20X4?
$69,000
$62,000
$70,000
$63,000
C
0.6 One of the products a garage sells to motorists is diesel fuel. Diesel fuel in inventory at 1
20X7 was $12,500, and there were invoices awaited for $1,700. During the year to 31
diesel fyel invoices of $85,400 were paid, and a delivery worth $1,300 had yet to be in

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Rent for the 3 months totals S3,600. On December 31, 2019, Hurd will report Prepaid Rent of: a. $0 b. $1,200 c. $2,400 d. $3,600
Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?
Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
SUTA taxes on July 31, 20--. WORKERS COMPENSATION INSURANCE AND ADJUSTMENT Columbia Industries estimated that its total payroll for the coming year would be 385,000. The workers compensation insurance premium rate is 0.2%. REQUIRED 1. Calculate the estimated workers compensation insurance premium and prepare the journal entry for the payment as of January 2, 20--. 2. Assume that Columbia Industries actual payroll for the year is 396,000. Calculate the total insurance premium owed and prepare a journal entry as of December 31, 20--, to record the adjustment for the underpayment. The actual payment of the additional premium will take place in January of the next year.
Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31.
Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.
JOURNAL ENTRIES (ACCRUED INTEREST PAYABLE) At the end of the year, the following interest is payable, but not yet paid. Record the adjusting entry in the general journal. Interest on 8,000, 90-day, 8% note (for 18 days) 32.00 Interest on 4,500, 60-day, 7% note (for 7 days) 6.13 38.13
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.