7) On June 1, 2019, Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California. The rent covers the period, June 1, 2019 through November 30, 2019. On June 1, Starbucks will record _. On June 30, Starbucks will record. A) Rent Expense of $66,000; nothing B) nothing; Rent Expense of $66,000 C) nothing; Rent Expense of $11,000 D) Prepaid Rent of $ 66,000; Rent Expense of $11,000

7) On June 1, 2019, Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California. The rent covers the period, June 1, 2019 through November 30, 2019. On June 1, Starbucks will record _. On June 30, Starbucks will record. A) Rent Expense of $66,000; nothing B) nothing; Rent Expense of $66,000 C) nothing; Rent Expense of $11,000 D) Prepaid Rent of $ 66,000; Rent Expense of $11,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 8MCQ: Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Rent for the...

See similar textbooks

Similar questions

Belarmino COMPANY sells its products in expensive, reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Belarmino accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2019 is as follows: Containers held by customers at December 31, 2018, from deliveries in: 2017 85,000 2018 240,000 325,000 Containers delivered in 2019 430,000 Containers returned in 2019 from deliveries in: 2017 57,500 2018 140,000 2019. 157,000 354,500 How much…
Fall Company operates a retail grocery store that is required by law to collect refundable deposits of P5 on soda cans. Information for 2018 follows: Liability for refundable deposits – January 1, 2019 150,000 Cans of soda sold 100,000 Soda cans returned 110,000 On February 1, 2018, Fall company subleased space and received a 25,000 deposit to be applied against rent at the expiration of the lease in 2020. In the December 31, 2019 statement of financial position, what amounts should be reported as current liabilities for deposits?
Jung Sa Ha Company must determine the December 31, 2020 year-end accruals for advertising and rent expenses. A P5,000 advertising bill was received January 7, 2021. It related to cost of P3,750 for advertisements in December 2020 issues and P1,250 for advertisements in January 2021 issues of the newspaper. A store lease, effective December 16, 2020 calls for fixed rent of P12,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P3,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2020 were P5,500,000. In its December 31, 2020 balance sheet, Jung Sa Ha should report accrued liabilities of A. P125,000 B. P128,750 C. P131,000 D. P134,750
Jo Angel Company sells its products in reusable, expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Jo Angel accounts for the container not returned within the time limit as being retired by sale at the deposit amount. Information for 2020 is as follows: Containers held by customers at December 31, 2019, from deliveries in: 2018 5,000,000 2019 6,000,000 Containers delivered in 2020 9,000,000 Containers returned in 2020 from deliveries in: 2018 4,000,000 2019 4,500,000 2020 3,500,000 What amount should Jo Angel report as a liability for returnable containers at December 31, 2020? Group of answer choices 7,000,000 8,000,000 0 5,500,000
Capricorn Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000 advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues and P500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixed rent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000. In its December 31, 2019 statement of financial position, Capricorn should report accrued liabilities of: P51,500 P53,900 P56,800 P56,300
On December 1, 2021, Davenport Company sold merchandise to a customer for $20,000. In payment for the merchandise, the customer signed a 6% note requiring the payment of interest and principal on March 1, 2022. How much interest revenue will the company recognize during 2021? In 2022?
Ward Company’s usual sales terms are net 60 days, FOB shipping point. Sales, net of returns and allowances, totaled P5,000,000 for the year ended December 31, 2019, before year end adjustments. On December 27, 2019, Ward authorized a customer to return, for full credit, goods shipped and billed at P50,000 on December 15, 2019. The returned goods were received by Ward on January 4, 2020, and a P50,000 credit memo was issued on the same date. Goods with an invoice amount of P300,000 were billed to a customer on January 3, 2020. The goods were shipped on December 31, 2019. Goods with an invoice amount of P200,000 were billed and recorded on December 30, 2019. The goods were shipped on January 3, 2020. Ward’s adjusted net sales for 2019 should be? Choices: P4,750,000 P5,050,000 P5,250,000 P4,950,000
At Dec. 31, 2019. H&M Co. had gift certificates outstanding, which had been sold to customers during 2019 for P 100 each H& M operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 10,000 outstanding gift certificates should be deferred at Dec. 31, 2019. * A.N one B.400,000 C.600,000 D.1,000,000
Omega Company sells its products in expensive, reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Omega accounts for the containers not returned within the time limit as being sold at the deposit amount. Information for 2020 is as follows: A. Containers held by customers at December 31, 2019 from deliveries in: 2018, P85,000; and 2019, P240,000. B. Containers delivered in 2020: P430,000. C. Containers returned in 2020 from deliveries in: 2018, P57,500; 2019, P140,000; and 2020, P157,000. 1. What is the total amount of Omega Company’s liability for returnable containers at December 31, 2020? 2. How much revenue from container sales should be recognized for 2020?
Casio Co. sells calculators that carry a one- year warranty against manufacturer's defects. Based on company experience, warranty costs are estimated at P 300 per calculator. During 2019, Casio sold 24,000 calculators and paid warranty costs of P 170,000. In its income statement for the year ended Dec. 31, 2019, how much should Casio report as warranty expense? * A.P 5,500,000 B.P 2,400,000 C.P 1,700,000 D.P 7,200,000
Pythagoras Company must determine the December 31, 2021 year-end accruals for advertising and rent expenses. A P2,000 advertising bill was received on January 7, 2022. It related to costs of P1,500 for advertisements in December 2021 issues and P500 for advertisements in January 2, 2022 issues of the newspaper. A store lease effective December 16, 2020 calls for fixed rent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2021 and 2020 were P2,200,000 and P1,500,000 respectively. In its December 31, 2021 statement of financial position, Pythagoras should report accrued liabilities of:
On June 30, 2021, the Esquire Company sold some merchandise to a customer for $30,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2022. The 6% rate is appropriate in this situation.Required:1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2021 interest accrual, and the March 31, 2022 collection. (Do not round intermediate calculations.)2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over-or understated in 2021 and 2022?