31\. Q6,7

Given below is extract of the Trial Balance as at 31 December, 2017 of Safeer Furniture Mart:

Debit

Salaries and Wages $35,000

Rent $25,000

Other Information:

Salaries and Wages accrued for the year amounted to $3,200

Rent Prepaid for the year was $2,500

1\ What amount will appear as Rent expense in the income statement for the year ended 31 December, 2017?

a\ $22,500

b\ $28,200

c\ $2,500

d\ $27,500

2\ How will the amount of rent prepaid appear in the Statement of Financial Position as on 31 December, 2017?

a\ $27,500 as a current liability

b\ $2,500 as a current asset

c\ $2,500 as a current liability

d\ $22,500 as a current asset