I need to know why is "increase in prepaid rent" deducted?

Q: 15. The earned income credit is a refundable credit. True False

A: The earned income credit is a tax credit available to the low income taxpayers in United States.…

Q: Are there any alternatives to the allowance method?

A: The alternative to the allowance method is the direct write-off method, under which bad debts are…

Q: Expense Recognition Question: Why is that sometimes there is no direct relationship between…

A: Accounting is based on a set of principles and rules and the expense recognition principle is one of…

Q: Rent paid in advance will be deducted from:

A: Solution: Rent paid in advance is prepaid rent  for which expense will be recognized in future when…

Q: Problem 3-11 Travel Expenses, Meals And Entertainment, Educational Expenses (LO 3.4, 3.5, 3.6) Bob…

A: Schedule C is used as a tax form and it is attached with Form 1040 electronically for the…

Q: rent income received by a lessor is not reportable as taxable

A: Income received means the amount of money received in respect of income generating activity. Income…

Q: explain the inherent risks associated with prepaid expenses and deferred charges.

A: A deferred charge is the same as a long-term prepaid expense, which is an expense made for an…

Q: Define Prepaid rent.

A: Prepaid Expense:   It refers to the expenditure incurred by company that is paid in one accounting…

Q: When are contingent fees allowed?

A:

Q: Chicago Steel's operating activities for the year are listed below. Beginning inventory Ending…

A: Cost of goods sold includes all the amount incurred and paid on the goods which are sold. It…

Q: 3. Calculate the amount of interest expense that will appear in the 2021 and 2022 income statements.

A: Interest Expenses :- interest expenses is the cost of Borrowing which is Payable by the Borrower…

Q: What are some costs of home ownership that are not deductible?

A: Costs are the monetary value of expenditures for goods, services, labor, products, equipment, and…

Q: The following information was taken from the 20X1 financial statements of Eiger Corporation, a maker…

A: Cash flow from operating activities consists of cash flows (inflows and outflows) from day to day…

Q: What AMT adjustment items are likely to affect all taxpayers who itemize their deductions? Please…

A: AMT(ALTERNATE MINIMUM TAX) The purpose of AMT is to ensure everyone pays a minimum amount of tax. It…

Q: What is a deferred revenue? Provide an example.

A: Deferred revenue: Deferred revenues are revenues related to more than one period.  A deferred…

Q: Explain the differences between actual cash value (ACV) and replacement cost for homeowner’s…

A: The difference between actual cash value coverage and replacement cost coverage is the depreciation.…

Q: Property and income taxes are more popular than sales taxes and user charges? True or False

A: Taxes are the fees charged by the government to collect revenue and run the country. The money…

Q: What are compensated absences?

A: Compensated absences are the absences or leaves for which the employees will be paid. Example of…

Q: income recieved but service not rendered, Please suggest the JE

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: Explain an example of prepaid expenses.

A: Definition:   Prepaid expense: Expenses of future period are paid in advance. These expenses are…

Q: What is rental income? Also, what are rental-related expenses? Give me some examples as well

A: Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…

Q: LOS-7) On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some…

A: Interest on Note = Face value of Note x rate of interest x 6/12 = $9900 x 8% x 6/12 = $396

Q: Why are the expenses ignored?

A: As per the question  after-tax cash flow from the sale is to be calculated

Q: How does Dropbox apply GAAP to revenue recognition? Explain and give examples.

A: Generally Accepted Accounting(GAAP) GAAP are a set of rules the encompass the details, complexities…

Q: When a company purchases prepaid rent, it

A: Prepaid rent is the amount of rent which is paid by the entity in advance against which the property…

Q: What are FUTA and SUTA taxes? Is there any possible reduction in the FUTA tax rate? If so, what is…

A: Introduction: Employer payroll taxes are paid by the employer from its own funds on the basis of…

Q: Which of the following is not a liability?a. Income taxes payableb. Accrued warranties payablec.…

A: Liability are the obligations which are to be paid in current period or in future.

Q: What is a temporary difference related to deferred taxes?

A: Deferred Taxes:   The timing difference of tax effect called Deferred tax. Its recognized on all…

Q: 5. Related to insurance, what is a deductible and how does it

A: In insurance scheme there is always mentioned deductible amount.

Q: Rent collected in advance shall be taxable when earned.

A: Meaning of Rent Received in Advance Rent Received in Advance is the amount of rent which is received…

Q: how exactly did you get the bad debt expense?

A: Allowance method is the GAAP approved method of providing for valuation of accounts receivable. In…

Q: The trial balance for Finders Company does not balance and the information as follows has been…

A: So you Mean why we debited rent twice to get the Right Answer.

Q: What is accrued rent?

A: The accrual basis of accounting is the accounting done for the transaction even if the cash inflow…

Q: I need the unadjusted credit balance of the allowance account and adjustment.

A: Compute unadjusted credit balance of allowance accounts using aging as shown below:

Q: How do I find the credit for partial payment?

A: Discount is a selling goods or service below the price of goods. This reduction in price is offered…

Q: Which travel expenses are deductible and which ones are not? Provide reasons for both deductible and…

A: The travel expenses are costs usually related to the purpose of traveling for business-related…

Q: What are the types of debts that must be repaid quickly called?

A: Generally having to pay money to another person or item The majority of debts, including credit card…

Q: Explain the difference between an ordinary annuity and an annuity due situation.

A: Annuity: It is amount of money payable to an individual at a periodic basis which is normally a…

Q: Shouldn't increase in accounts receivable be subtracted instead of added?

A: Cash Flow Statement - Statement of cash flow includes inflow and outflow of cash during the…

Q: Should we include income derived from illegal sources in the computation of gross income? Why or why…

A: Taxes are a form of dues and obligations which needs to be paid by the individual on income earned…