What effect does the adjusting entry in question 3-46 have on Olivers net income for February? a.

Question:

What effect does the adjusting entry in question 3-46 have on Oliver’s net income for February?
a. Net income will decrease by $350.
b. Net income will increase by $350.
c. Net income will increase by $700.
d. Net income will decrease by $700.

Data from Question 3-46

On January 1 of the current year, Oliver Company paid $2,100 rent to cover six months (January–June). Oliver recorded this transaction as follows:

A1 Journal Entry Debit Credit Date Accounts 2 3 4 Jan 1 Prepaid Rent 2,100 Čash 2,100

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

See More Books

Question Posted: Jun 13, 2019 10:05 AM

See More Questions

Antique Interiors reported the following transactions in October: Oct 2 .............. Sold merchandise on account to Tim Hinkel, $1,200, terms 1/10, n/30. 10 .................. Sold merchandise on...
Magnus Credit Corp. wants to earn an effective annual return on its consumer loans of 16 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law...
You are to make monthly deposits of $400 into a retirement account that pays 10.5 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your...
An analyst expects that 20% of all publicly traded companies will experience a decline in earnings next year. The analyst has developed a ratio to help forecast this decline. If the company is headed...
Use the same data presented in Problem 1 to answer the following questions: a. Explain the impact on the optimal price of designating the "miscellaneous" cost item as fixed versus variable. b. Under...
Solve the given systems of equations by using the coefficient matrix. Use a calculator to perform the necessary matrix operations and display the results and the check. 4rs 8t 2u + 4v = -1 + 3r + 2s...
E 11-13 Determining the primary beneficiary in a VIE Pop Corporation and Son Company participate in a business classified as a VIE. Under terms of their contractual arrangement, Pop and Son share...
High Company issued $100,000 face value of bonds on January 1, 2012. The bonds had a 5 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31,...
Install Spark and then write the following in Python . 1. Create two base (initial) RDDs, one from a file and the second one from a collection. 2. Apply any ten different transformations on any of...
Valley Designs issued a 120-day, 5% note for $60,000 dated April 15 to Bork Furniture Company on account. A. Determine the due date of the note. B. Determine the maturity value of the note. C....
In which month should Newbury report the $55 revenue on its income statement? a. September b. August c. October d. July Jenna Newbury began a music business in July 2018. Newbury prepares monthly...
Your company will generate $45,000 in cash flow each year for the next nine years from a new information database. The computer system needed to set up the database costs $260,000. If you can borrow...
Draw the structure of (a) A six-carbon alkene that would give the same product from reaction with HBr whether peroxides are present or not. (b) Four compounds of formula C 10 H 16 that would undergo...
Anita and Bonita have been roommates for the past two years while they've been in graduate school. Now that they're graduating, they are each planning to move to different cities. Their one joint...
To what extent are business ethics assumed, or taken for granted, by people in businesses?
Empowered by what he has learned in this class about gender, Brady makes a friendly wager with his girfriend, Marlisa: "I bet I can guess how the men and women at the next table will behave during...
In Exercises 29 and 30, find the probabilities and indicate when the "5% guideline for cumbersome calculations" is used. 29. Medical Helicopters In a study of helicopter usage and patient survival,...
Introduction to Internetworking Project 1: Ctrl-Alt-Del Inc. INTRODUCTION You have accepted a contract to participate in the design of the network infrastructure of a company called Ctrl-Alt-Del Inc....
For the following exercises, determine if the function is a polynomial function and, if so, give the degree and leading coefficient. f(x) = 4x 5 3x 3 + 2x 1
Write the binomial probability in words. Then, use a continuity correction to convert the binomial probability to a normal distribution probability. P(x 110)
(a) When entering a transaction in the journal, should the debit or credit be written first? (b) Which should be indented, the debit or the credit?
(a) Should accounting transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the...
Journalize these accounting transactions. (a) Stockholders invested $12,000 in the business in exchange for common stock. (b) Insurance of $800 is paid for the year. (c) Supplies of $1,800 are...
Oct. 31: Paid salaries, $45,000 ( 75% selling, 25% administrtive). Data table Data table them to retail stores. The company has three inventory items: and floor lamps. RLC uses a perpetual inventory...
question 1- You borrow a simple loan of SR 500,000, interest rate is 20%, it matures in one year. what's the yied to maturity? question 2- calculate_i for One-Year Discount Bond with price(p) =...
Taste of Muscat is a reputed chain of restaurants operating in Oman. Assume You are working as a management accountant for this restaurant chain which is specialized in all types of Arabic food. Your...

What effect does the adjusting entry in question 3-46 have on Olivers net income for February? a.

Question:

A1 Journal Entry Debit Credit Date Accounts 2 3 4 Jan 1 Prepaid Rent 2,100 Čash 2,100

Step by Step Answer:

a Net i...View the full answer

Financial Accounting

Students also viewed these Business questions