Question

Mr.juma paid the rent three months in advance for his shop. Write a short note on...

Mr.juma paid the rent three months in advance for his shop. Write a short note on prepaid expenses with literature review and by providing examples.?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Prepaid expenses refers to the expenses which has been paid in advance and benefits of the advance payment of expenses will be availed in future. The prepaid expenses are normally classified as current assets in the Balance Sheet. When the benefits of the prepaid expenses are used/ availed they are expensed in the income summary by passing the adjusting journal entry. Normally a year end adjusting journal entry is passed at the end of the accounting period. The examples of the prepaid expenses, are prepaid insurance, prepaid rent etc.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mr.juma paid the rent three months in advance for his shop. Write a short note on...
Mr.juma paid the rent three months in advance for his shop. Write a short note on prepaid expenses with literature review and by providing examples.?
Bill ClintonBill Clinton reportedly was paid an advance of $10.0 million to write his book My...
Bill ClintonBill Clinton reportedly was paid an advance of $10.0 million to write his book My LifeMy Life. Suppose the book took three years to write. In the time he spent? writing, Clinton could have been paid to make speeches. Given his?popularity, assume that he could earn $8.1 million a year? (paid at the end of the? year) speaking instead of writing. Assume his cost of capital is 9.7% per year.         a. What is the NPV of agreeing to write...
On the first of the month, Avery paid 6 months’ rent for the store in advance...
On the first of the month, Avery paid 6 months’ rent for the store in advance at $2200 per month. Avery purchased supplies for the store in the amount of $425 in cash from the Burlington Supply Co on March 1 as well. Wages were paid on March 1 in the amount of $2120. These wages covered the last 2 weeks of February. On March 2, Avery placed an order for snowboards in the amount of $7600 from the Mad...
1) On May 1st Sarif Industries paid $24,000 to Detroit Realty for 6 months rent beginning...
1) On May 1st Sarif Industries paid $24,000 to Detroit Realty for 6 months rent beginning June 1st. The company did the correct recording on May 1st. What accounts of Sarif were affected? A-- Decrease in Cash, 24,000; increase in Pre Paid Rent, 24,000 B-- increase Rent Expense, 24,000; decrease in Cash 24,000 C-- increase Prepaid Rent, 24,000; increase in Rent Expense, 24,000 D-- increase Rent Expense, 24,000; decrease Prepaid Rent, 24,000 2) Tai Yong Medical provides $45,000 in services...
4.  Johnson Co. paid $2,400 for eight months' rent on the first day of the month.  At the...
4.  Johnson Co. paid $2,400 for eight months' rent on the first day of the month.  At the end of the month, what adjusting entry must be made relating to this transaction? a.  a debit to Rent Expense and a credit to Prepaid Rent for $300 b.  a debit to Prepaid Rent and a credit to Rent Expense for $300 c.  a debit to Rent Expense and a credit to Prepaid Rent for $2,100 d.  a debit to Prepaid Rent and a credit to Rent Expense...
On December 1, 2009, Fleet company paid $30,000 rent for some office space which was debited...
On December 1, 2009, Fleet company paid $30,000 rent for some office space which was debited in full to the prepaid rent expense account. The rent was for three months. Assuming Fleet's accounting year ends December 31, give the adjusting entry required on dece,ber 31, 2009.
On november 1, 2009, Bug Busters collected $6,000 in advance for three months of service to...
On november 1, 2009, Bug Busters collected $6,000 in advance for three months of service to be provided beginning on that date. it was credited in full to unearned rent revenue. Assuming the accounting year ends december 31, give the adjusting entry required on december 31, 2009 (assuming that no adjusting entries have been made during the year).
Adjusting entries: Prepare the adjusting entries needed at December 31, 2020.If no entry is needed, write...
Adjusting entries: Prepare the adjusting entries needed at December 31, 2020.If no entry is needed, write NONE. 1.   Interest on a $ 42,000, 7%, six-year note payable was last paid on September 1, 2019. 2.   On May 31, 2020, Maison entered into a contract to provide services to a customer for 18 months beginning June 1. The customer paid the $ 18,000 fee in full on June 1 and Maison credited it to Service Revenue. 3.   On August 1, 2020,...
Write short note on the following: 1. Keynes' short run consumption function and its properties. 2....
Write short note on the following: 1. Keynes' short run consumption function and its properties. 2. Comparasion between two-sector and three-sector spending multipliers.
Rent revenue collected in advance. Accrued revenue on short-term investments. Accumulated depreciation on equipment. Patents. Land...
Rent revenue collected in advance. Accrued revenue on short-term investments. Accumulated depreciation on equipment. Patents. Land held for speculation. Salaries which company budget shows will be paid to employees within the next year. Goods held on consignment (by consignee). Bonds payable due in 5 years. Allowance for Doubtful Accounts Employees' payroll deductions. 1. Current Assets 2. Long term Investments 3. Plant and Equipment 4. Intangible Assets 5. Other Assets 6. Current Liabilities 7. Long-Term Liabilities 8. Capital Shares 9. Retained...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT