Fu, Explore over 16 million step-by-step answers from our library, View answer & additonal benefits from the subscription, Explore recently answered questions from the same subject, Explore documents and answered questions from similar courses, University of Maryland, University College, Explore recently asked questions from the same subject. 99.Which of the following is an example of a prepaid expense? January 1 The Journal Entry to recorded prepaid rent was as follow: Dr. Prepaid Rent $2,800 Cr. But legal niceties aside, the landlord will still have access to a sizable sum. But tenants interests are at stake, too, because these structural changes become the property of the landlord unless the owner agrees otherwise. Donec aliquet. Rent it Right. There was no beginning balance in the Unearned Rent account for the period. Recording of a business transactions in a chronological order. Donec aliquet. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is 6. On July 1, a business collected $3,300 rent in advance, debiting Cash and crediting Unearned, A:When an event occurs in the business and it can be measured and expressed in terms of money, it, Q:Suppose a customer rents a vehicle for three months from Commodores Rental on November 1, paying, A:The adjustment are to be paid if expenses are due and not yet paid or expenses are paid in advance, Q:On October 1, Vista View Company rented warehouse space to a tenant for $3,900 per month and, A:Answer) Gracie, Inc. made a prepaid rent payment of $2,900 on January 1. 41. What should we do? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Lee & Associates Residential. Therefore, the credit to Supplies in the, adjusting entry is for the amount of supplies. 845 Third Avenue, 4th floor. Leading commentary by award-winning journalists. May 18, 2011. been recorded and needs adjusting and deferred revenue has never been recorded. The amount of prepaid Rent that would appear on the January 31 balance sheet after adjustment is ? Mann Publications. By contrast, had the tenants installed a fancy wine storage closet or a studio-grade dance floor, youd be able to say that these were unnecessary and unprofitable additions you never would have made, which might even have harmed your propertys value. Why landlords frown upon prepaid rent. Theamount of prepaid rent that would appear on the January 31 balance sheet after adjustment is a. The adjusting entry on December 31 is a debit to Rent Expense, $9,000, and a credit to Prepaid Rent, $9,000. If the landlord doesnt send a written notice, then a tenant can use that as an affirmative defense if the landlord tries to evict them based on nonpayment of rent.4, If a tenant doesnt pay their rent, a landlord must give them a 14-day written notice. Complete the following sentence. Gracie, Inc. made a prepaid rent payment of $2,800 on January 1. The company's monthly rent is $800. -variance The observation that the preference for, I need the answers and explanation in number 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30 1. Nam lacinia pulvinar tortor nec facilisis. You will receive additional instructions via email. Donec aliquet. After those two weeks have passed, the landlord can start eviction proceedings for nonpayment of rent.5. Browning Realty Co. pays weekly salaries of $17,000 on Monday for a, A:Solution: Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. A. $2,100 The entry to adjust the accounts for salaries accrued at the end of the accounting period is debit Salaries Expense; credit Salaries Payable On February 1, WorldTravel Ltd. prepaid $ 6,200 for three months' rent. Austin, Inc. made a prepaid rent payment of $2,800 on January 1st. Theamount of prepaid rent that would appear on the January 31 balance sheet after adjustment is, Accumulated Depreciation and Depreciation Expense are classified, respectively, as, The type of account and normal balance of Prepaid Insurance is, The type of account and normal balance of Unearned Consulting Fees is, Data for an adjusting entry described as "accrued wages, $2,020" requires a, debit to Wages Expense and a credit to Wages Payable, debit to Wages Payable and a credit to Wages Expense, debit to Accounts Receivable and a credit to Wages Expense, debit to Dividends and a credit to Wages Payable, Supplies are recorded as assets when purchased. The adjusting entry on December31 is, debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800, debit Insurance Expense, $1,500; credit Prepaid Insurance, $1,500, debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100, debit Prepaid Insurance, $1,800; credit Cash, $1,800, Gracie, Inc. made a prepaid rent payment of $2,800 on January 1. Theyre claiming that the improvements they put into the property new floors, fixtures, carpeting were done in anticipation of purchasing the house someday, and now they want to be reimbursed. Nam lacinia pulvinar tortor nec facilisis. If $2,500 is earned by December 31, the adjusting entry made at that time is a debit. This E-mail is already registered as a Premium Member with us. Be sure to define reliability coefficient in your answer before explaining how the two factors affect reliability, A split-half correlation, KR 20, and coefficient alpha are all used to evaluate -validity. Sometimes, the tenant improvement allowance may not be received immediately, and in that case the lessee would debit A/R (accounts receivable). Pellentesque dapibus efficitur laoreet. Argumentative Essay #1 - Duty Based Ethics vs Consequentialism In a 750 - 900 word essay, address the ff. But we dont actually know because its not codified. The balance in the supplies account, before adjustment at the end of the year, is 5,330. Pellentesque dapibu, a molestie consequat, ultrices ac magna. The last payday of the year was Friday, December 26. The entries that are made at the end of an accounting period in accordance with, Q:Extreme Cruise Inc. prepaid $4,500 for 3 months rent on July 1, 2010. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is Accounting Business Financial Accounting ACCT 220-7985 Answer & Explanation Solved by verified expert Recording of a business transactions in a chronological order. 2. Vague legislation such as this will surely lead to litigation. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is $2,100. D. Liabilities overstated by $600; net income overstated by $600. By accepting several months worth of rent, your landlord is afraid that hed be violating the security deposit law. $2,100 90. A tenant improvement allowance (TIA) is generally defined as money paid by a landlord to the tenant/lessee to reimburse that tenant for the construction of leasehold improvements, such as modifications to commercial real estate. Required fields are marked *, Please complete the equation below: * a. Unearned Rent Revenue. We have seen some companies debit cash and credit leasehold improvements. Therefore, the journal entry for a lessee at lease inception is to record the payment as a debit to cash, and to record an offsetting credit to a lease incentive obligation liability, which is amortized (as a reduction to rent expense) over the life of the lease. of months/ 12, Q:Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying, A:Given information is: Argue for your, "The Church is other directed rather than self-focused." What are some characteristics of an effective manager? So $700 of the wages has, Q:An analysis of the accounts shows the following. The company's monthly rent is $700. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Is there any reason why I shouldnt be able to prepay the rent? On December 31,, A:A journal entry is a means of recording all of a company's individual financial transactions in its, Q:Paradise Realty Co. pays weekly salaries of $16,350 on Friday for a five-day workweek ending on that, A:If the accounting period ends on Monday, the salary payable will be only for one day (Monday)., Q:On December 1 of the current year, Prepaid Rent was debited $7,200 for three months of rent, to, A:Prepaid expenses refer to the expenses of the business that are paid in advance before such expense, Q:Suppose on January 1 Andrew's Tavern prepaid rent of $6,000 for the full year. The companys monthly rent is $700. In order to understand the correct accounting, we have included an example below. Gracie, Inc. made a prepaid rent payment of $4,000 on January 1. False-dr rent expense $9000, cr prepaid rent $9000 (asset method) False - dr rent expense $ 9000 , cr prepaid rent $ 9000 ( asset method ) View this solution and millions of others when you join today! Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends (a) on Monday and (b) on Thursday. New York regulates grace periods and late fees. Lorem ipsum dolor sit amet, consectetur adipiscing elit. 2003-2023 Chegg Inc. All rights reserved. On the other hand, given that youre going to sell a house you describe as old, you might argue that putting new fixtures in a bathroom that any buyer would remodel anyway is a waste of time and not a sound investment. Theamount of prepaid rent that would appear on the January 31 balance sheet after adjustment is, 93.Accumulated Depreciation and Depreciation Expense are classified, respectively, as, 94.The type of account and normal balance of Prepaid Insurance is, 95.The type of account and normal balance of Unearned Consulting Fees is, 96.Data for an adjusting entry described as "accrued wages, $2,020" requires a, a.debit to Wages Expense and a credit to Wages Payable, b.debit to Wages Payable and a credit to Wages Expense, c.debit to Accounts Receivable and a credit to Wages Expense, d.debit to Dividends and a credit to Wages Payable, 97.Supplies are recorded as assets when purchased. During May, employees earned an additional 2,790 in vacation benefits, but some employees used vacation days that amounted to 2,050 of the vacation benefits. Why are top-level managers important to large corporations? 1. Journalize the necessary adjusting entry (include an explanation) assuming that the accounting period ends on Friday. 89. Rent for, Q:Garcia Realty Co. pays weekly salaries of $16,400 on Friday for a five-day workweek ending on that. Gracie, Inc. made a prepaid rent payment of $2,800 on January 1. Prepaid r. You might think that you would be justified in saying, "Tough luck!" Unless the landlord repays it voluntarily, this will require a lawsuit. The company's monthly rent is $1,000. Its also illegal for landlords to charge a fee if a tenant chooses to pay rent using another method, such as cash, check, or money order.1. But it also prevents large-scale mischief at the other end of the landlord-tenant relationship. Sales salaries are uniformly 11,750 for a five-day workweek, ending on Friday. When calculated, the total lease payments is $15,000 (5 x $1,000 + 5 x $2,000). Kindly login to access the content at no cost. $2,100 B. It looks like youre already a Select Member! Copyright 2023 Mann Publications All Rights Reserved. If the politicians who put forth these new laws had been using them as anything more than a symbolic gesture, they would have clearly spelled out the penalties. bias in favor of Group B. bias in favor of Group A. . Walter W. A: Your landlords hesitations are understandable, particularly if your state, like most, limits the amount of security deposit a landlord may require. Your email address will not be published. That is 4000 - 1000 Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is 1,875. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. $2,100. The adjusting entry on December 31 is a debit to Prepaid Rent, $9,000, and a credit, A company pays an employee $3,000 for a five-day work week, MondayFriday. The company's monthly rent is $700. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Therefore, the credit to Supplies in the adjusting entry is for theamount of supplies, d.required for the next accounting period, 98.The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n). Hoosiers, a specialty clothing store, rents space at a local mall for one, Q:For each separate case below, follow the three-step process for adjusting the unearned revenue, A:Introduction: To record the rent payment in Year 7, calculate the new straight-line expense by taking the new total value of the payments from Years 7 through 14, less the $2,000 balance of deferred rent at the end of Year 6, calculated as $26,000, or $28,000 minus $2,000. Prepaid rent is rent paid prior to the rental period to which it relates. The base rent amortization schedule for the renewed lease is below: The entry to record the rent payment and expense at the end of Year 7, reflecting the renewal, is as follows: To calculate the amortization of the tenant improvement allowance after the renewal, take the unamortized balance at the end of Year 6 of $400 and divide it by the 8-year lease term (Years 7 through 14) to come up with the new amortization amount of $50 each year. Reviews Q:The balance in the prepaid rent account before adjustment at the end of the year is $11,400, which, A:Prepaid rent is the rent which is paid in advance. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. Assets understated by $600; net income overstated by $600. 2. Call the activation number on the card mailer or the customer service number on the back of your card. $2,100 b. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. $700 c. $2,800 d. $1,400 89.Accumulated Depreciation and Depreciation Expense are classified, respectively, as a.expense, contra asset Unfortunately, as more laws like these are passed across the country, the animosity between tenants and property owners is even further reinforced. What does the preceding statement imply about the Church's missionary nature? The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is $2, 100 $700 $2, 800 $1, 400 Smokey Company purchases a one-year insurance policy on July 1 for $3, 600. In terms of criterion validity, the situation shown in this following diagram reflects differential validity. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry Is O A $18,000 OB. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Thank you for subscribing to Morning Headlines. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is Adjustment entry is required to pass to record correct amount of revenue, Q:On October 1, Vista Vlew Company rented warehouse space to a tenant for $2,100 per month and, A:UnearnedrentaccountbalanceonDec.31=TotalUnearnedrent-Rentearned, Q:The balance in the prepaid rent account before adjustment at the end of the year is $15,764, which, A:Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized, Q:(a) Prepaid rent represents rent for January, February, March, and April. Please update your billing information to reactivate your membership. Sign up for Individual Select membership today. The company's monthly rent is $800. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is 89. The last payday of the year was Friday, December 26. 92.Gracie, Inc. made a prepaid rent payment of $2,800 on January 1. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is, entesque dapibus efficitur laoreet. In other words, despite what tenants might think or consider fair, once that faucet is installed, it no longer belongs to the tenant unless the landlord agrees. The consequences for a property owner who takes prepaid rent in this post-rent regulation also remain to be seen. The TIA amortization schedule for the initial lease would look like this: The entry to reduce the lease expense each year by $100, and to amortize the tenant improvement allowance, at the end of year 1 is shown separately below: In practice, the above two entries can be combined into one annual, or periodic entry: Note that as a result of the TIA, rent expense each year is $1,400 instead of $1,500. Everything in. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Its difficult enough to be out of work, but to be kept out of a rental market simply because you are forbidden from prepaying the rent is doubly hard. Rent per month = 12840/12 = $ 1070, Q:On October 1, Vista View Company rented warehouse space to a tenant for $1,100 per month and, A:Given, Keep in mind that this is an organization which is affiliated with the city; however, they still received a letter stipulating that the broker with whom they were working could lose his license for accepting a larger security deposit on behalf of the property owner. It seems to stem from a sincere belief that deems all property owners as bad and all tenants as good.. the amount of prepaid rent that would appear on the january 31 balance sheet after adjustment is 1 See answer Advertisement W0lf93 The lease term is 10 years, so we take the total value of the payments of $15,000 divided by 10 years to get a straight-line expense of $1,500 to be recognized annually. Cash $2,800 January 31 The company's monthly rent is $700. In another scenario, a colleague recently attempted to close a deal with an organization that assists veterans in finding apartments and will often prepay an entire year of rent on their behalf. Journalize the necessary adjusting entry (include an explanation) assuming that the accounting period ends on Wednesday. More importantly, they may have increased the value of your property. Based on this, the new lease term is 8 years (years 7 through 14). This isnt a sure winner for you. How, Identify and describe two (2) factors that affect reliability coefficients. [ctct ctct-156 type:hidden 'Mann Report Management Newswire::#159']. Website design by CS Designworks. Therefore, the credit to Supplies in the adjusting entry is for theamount of supplies, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n). A double-entry bookkeeping system Normal account balances are those which are expect. New York has a statewide grace period of five days. Pellentesque dapibus efficitur laoreet. The current tenants, who have lived there four years, want to buy, but theyve offered too little. Divide this value by the remaining 8 year lease term to come up with a period straight-line rent expense of $3,250. Lets assume we have the same facts as above, but now at the beginning of Year 7, the company decides to renew the lease for an additional 4 years. 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