Need help with this question solution general accounting A business leases a building with a total of 80,000 square feet split equallybetween two floors. The company charges rent for the first floor at threetimes the rate of the second floor. The total monthly rent is $40,000. Howmuch monthly rental expense should be allocated to a department thatoccupies 15,000 square feet on the first floor? (Do not round intermediatecalculations.)A. $12,000B. $7,500C. $15,000D. $9,000E. $11,250

Step 1: Analysis of information givenTotal area of the building = 80,000 square feetThis area is…

Answered: A business leases a building with a…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 8DQ

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A 24 unit apartment complex has gross potential rent of $228,000. Assume that the vacancy rate is 5%. Other income is $10,000 - it is not affected by the vacancy rate. Expenses are as follows: Mgmt fee: 6% of total revenues Insurance & Taxes: $49,796 Salaries & Personnel: $55,592 Maintenance & Repairs: $31,476 Utilities: $21,680 What is the Net Operating Income for the property? Note: All numbers are on an annual basis.
seller sold a duplex for 60,000 with closing schedules for june 24 this year. both units were rented november 1 last year at $180 each per month with the first and last months rents paid in adance. in addition, each tenant paid the seller a security deposit of $125. based upon 12 equal of 30 days each, and the day of closing belongs to the seler, how much of the combined rent payments and securty deposits will crdit to the buyer at closing.
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Given the following scenario- Office building, 3 stories, 3000 square feet (SF) gross interior floor space each, 2 tenants per floor, 1 350 sf of the building is used for hallways, common bathrooms, stairs, elevator, and lobby. The owner wants a gross rent of $135,000 per year. (First, establish the Load Factor) What is the rent that the Owner should charge per square foot? If Tenant Z rents 1200 sf of usable area, what will be his monthly rent? If the building has an operating expense ratio of 28% of gross rents, including vacancy and reserves, what is the Net Operating Income? The sale price at a 9% CAP rate?
Mutiple choice: A hospitality company is the maker of an $18,000 note to be paid in quarterlyinstallments of $3,000 each. The first payment is to be made on June 30. How willthe note be represented on the balance sheet for May 31? A. $18,000 long-term liabilityB. $3,000 expense, $15,000 long-term liabilityC. $3,000 expense, $9,000 current liability, $6,000 long-term liabilityD. $12,000 current liability, $6,000 long-term liability
A real estate office handles a 40-unit apartment complex. When the rent is $540 per month, all units are occupied. For each $40 increase in rent, however, an average of one unit becomes vacant. Each occupied unit requires an average of $65 per month for services and repairs. What rent should be charged to obtain a maximum profit.
TB MC Qu. 09-21 A building owner charges net rent... A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year, but is providing six months of free rent in the first year as a concession. Using a 10 percent discount rate, what is the effective rent over the three years?
25% of the price of a living room furniture is paid with a document with a face value of $4,000 and expiration in 30 days. 30% is settled through a payment within 60 days, another 30% with a document within 90 days of the purchase and the remaining 15% is left as an advance payment. Obtain a) The price of the furniture. b) The advance payment and the other two payments. c) The total interest charge. Assume that the furniture store charges 22.20% annually compounded by months on its credit sales.
3....new. //// Metlock Inc. was incorporated in 2019 to operate as a computer software service firm, with an accounting fiscal year ending August 31. Metlock’s primary product is a sophisticated online inventory-control system; its customers pay a fixed fee plus a usage charge for using the system.Metlock has leased a large, Alpha-3 computer system from the manufacturer. The lease calls for a monthly rental of $44,000 for the 144 months (12 years) of the lease term. The estimated useful life of the computer is 15 years.All rentals are payable on the first day of the month beginning with August 1, 2020, the date the computer was installed and the lease agreement was signed. The lease is non-cancelable for its 12-year term, and it is secured only by the manufacturer’s chattel lien on the Alpha-3 system.This lease is to be accounted for as a finance lease by Metlock, and it will be amortized by the straight-line method. Borrowed funds for this type of transaction would cost…
If an apartment building list rent at $1,300 per month but is offering two months free rent (on an annual lease) then what is the effective rent? $833 $1,300 $1,250 $1,080 $1,170
On January 1, Lessor Company signed a 1-year rental with quarterly payments of P100,000 due at the end of each quarter. In addition, the lessee must pay contingent rent of 5% of all sales in excess of P10,000,000. The contingent rent is paid in one payment on December 31. The same lessee has used the building for the past 5 years, and in each of those years the lessee reached the contingent rent threshold of P10,000,000 in sales. Sales of the lessee for the first two quarters are as follows: Quarter ended Amount March 31 P3,200,000 June 30 3,000,000 What amount of rent income should be reflected in Lessor’s quarterly income statement for the three months ended June 30?
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