Question

In: Accounting

Pepper Company reported revenues of $12,000, supplies expense of $3,000, and net income of $2,000 for...

Pepper Company reported revenues of $12,000, supplies expense of $3,000, and net income of $2,000 for the most recent period. If the company’s only other expense was Rent Expense, what was its balance at the end of the period?

Multiple Choice

  • $7,000

  • $9,000

  • $14,000

  • $15,000

Solutions

Expert Solution

The correct answer is $7,000.

Balance of rent expense at the end of the period was $7,000.

Explanation:

It is given,
Revenues = $12,000
Supplies expense = $3,000
Net income = $2,000
Company's only other expense was Rent expense.

The equation for net income is,
Net income = Revenues - Expenses
$2,000 = $12,000 - (Supplies expense + Rent expense)
$2,000 = $12,000 - ($3,000 + Rent expense)

$3,000 + Rent expense = $12,000 - $2,000

Rent expense = $12,000 - $2,000 - $3,000 = $7,000

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Based on the following transactions, calculate the revenues, expenses, and net income that would be reported...
Based on the following transactions, calculate the revenues, expenses, and net income that would be reported on (a) the cash basis and (b) the accrual basis: i. Inventory costing $70,000 was purchased on account. ii. Inventory costing $60,000 was sold for $100,000. Eighty percent of the sales were for cash. iii. Cash collected from credit customers (those who bought on account) totalled $20,000. iv. A lease was signed at the beginning of the year, requiring monthly payments of $1,000. The...
Based on the following transactions, calculate the revenues, expenses, and net income that would be reported...
Based on the following transactions, calculate the revenues, expenses, and net income that would be reported on (a) the cash basis and (b) the accrual basis: i. Inventory costing $70,000 was purchased on account. ii. Inventory costing $60,000 was sold for $100,000. 80% of the sales were for cash. iii. Cash collected from credit customers (those who bought on account) totalled $20,000. iv. A lease was signed at the beginning of the year, requiring monthly payments of $1,000. The rent...
A company reported the following numbers for the most recent fiscal year: Revenues $3,000 EBITDA $650...
A company reported the following numbers for the most recent fiscal year: Revenues $3,000 EBITDA $650 DA (Depreciation) $150 EBIT $500 - Interest Expenses $50 Taxable Income $450 Taxes $135 Net Income $315 Payout $157.5 During the year, the company reported capital expenditures of $250 and an increase in net working capital of $40. The tax rate is 30%. Assume that we know the following: • The company’s FCF will grow at 8% per year for the next five years....
Becker Inc. reported net income of $560,000 on its income statement for 2020. Depreciation expense for...
Becker Inc. reported net income of $560,000 on its income statement for 2020. Depreciation expense for the year was $63,000. Over the course of the year, Becker also experienced the following changes in account balances: Accounts payable:  $12,000 increase Inventory:  $18,000 increase Accounts receivable:  $9,000 decrease Accrued liabilities:  $19,000 decrease Prepaid insurance:  $7,000 decrease Determine net cash provided by operating activities for 2020.
Revenues = 1,080; Costs = 306; Tax rate = 0.26; Interest Expense = 51; Net Income...
Revenues = 1,080; Costs = 306; Tax rate = 0.26; Interest Expense = 51; Net Income = 288; What is the amount of Depreciation? Enter value to the nearest penny.
Bracewell Ltd. reported net income of £195,000 for 2017. Bracewell also reported depreciation expense of £40,000...
Bracewell Ltd. reported net income of £195,000 for 2017. Bracewell also reported depreciation expense of £40,000 and a gain of £5,000 on disposal of plant assets. The comparative statements of financial position show an increase in accounts receivable of £15,000 for the year, a £17,000 increase in accounts payable, and a £4,000 decrease in prepaid expenses. Instructions: Prepare the operating activities section of the statement of cash flows for 2017. Use the direct method.
Consider the following: Net income, $285,000 Depreciation Expense $33,000 Increase in accounts receivable, $12,000 Decrease in...
Consider the following: Net income, $285,000 Depreciation Expense $33,000 Increase in accounts receivable, $12,000 Decrease in merchandise inventory, $60,000 Decrease in accounts payable, $24,000 Increase in income taxes payable, $9,000 Using the Indirect Method, the Net Cash provided by Operating Activities was: Group of answer choices $351,000 $303,000 $318,000 $270,000
On the income statement of a merchandising company, interest income and interest expense are reported: Select...
On the income statement of a merchandising company, interest income and interest expense are reported: Select one: A. As part of cost of goods sold B. As separate items of other income and expense below the net operating income or loss C. By showing interest income as additional sales revenue and interest expense as an operating expense D. By offsetting interest income and interest expense and showing the excess as an operating revenue or expense
Bob's, Inc. reported net income of $658,000 and depreciation expense of $57,500 in 20X2. Bob's also...
Bob's, Inc. reported net income of $658,000 and depreciation expense of $57,500 in 20X2. Bob's also reported income of $625,000 and depreciation expense of $67,500 in 20X1. The current portion of the balance sheets are reproduced below:   20X2 20X1        20X2 20X1 Current Assets   Current Liabilities Cash and marketable securities 1,000 900 Line of credit 0 1,000 Accounts Receivable 1,500 1,600 Accounts Payable 2,200 2,350 Inventory 4,552   4,337 Accrued expenses 1,505 1,605 Prepaid expenses 110 115 Calculate the 20X2...
Ocho Corporation's net cash flows for the next three years are projected to be $2,000, $3,000,...
Ocho Corporation's net cash flows for the next three years are projected to be $2,000, $3,000, and $4,000, respectively. After that, the cash flows are expected to increase by 3.0 percent annually. What is the value of the firm if its weighted average cost of capital is 10 percent? Group of answer choices $32,281 $41,627 $51,523 $39,444 $47,126
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT