Business, 02.04.2020 03:16 LanBon02

On October 25, 2019, the company paid $29,400 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include: Multiple Choice a $9,800 debit to Rent Expense a $4,900 credit to Cash. a $29,400 credit to Rent Expense

a $4,900 credit to Prepaid Rent.

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Answer from: daniel1480

Rent expense (Dr,) $9,800

Prepaid Rent $9,800

Explanation:

The accrual concept of accounting requires us to record the expenses in a period in which they are incurred rather than when cash is paid. When the company paid advance rent of six months at the end of October, it will record a current asset (Unexpired resource) on the face of balance sheet. At the end each accounting period, it is required to expense out the resources (benefits) that are expired (utilized). This can be done through straight-line method. So, on December 31, 2019, the rent expense of two months that is of November and December should be charged to profit and loss statement in-order to record the expense of related period.

Workings

Rent expense per month = 29,400 / 6 = $4,900.

⇒ Rent expense of two months = 4,900 * 2 = $9,800.

This amount should be written off and the required adjusting entry is:

Rent expense (Dr,) $9,800

Prepaid Rent $9,800

Answer from: Quest

c is the answer, and do you have a ps4?

Answer from: Quest

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.

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On October 25, 2019, the company paid $29,400 rent in advance for the six-month period (November 201...

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