Question
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
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
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