How much is the prepaid expenses on Dec. 31, 2020? These information was taken from the records of MAD Co:Jan. 1, 2020Dec. 31, 2020Payments made670,000Operating ExpensesPrepaid expensesAccrued expenses690,000120,000???230,000190,000

A prepaid expense is an amount that is paid in advance for future expense and that would be adjusted…

Answered: These information was taken from the…

These information was taken from the records of MAD Co Jan. 1, 2020 Dec. 31, 2020 Payments made Operating Expenses Prepaid expenses 670,000 690,000 120,000 ??? Accrued expenses 230,000 190,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

How much is the prepaid expenses on Dec. 31, 2020?

These information was taken from the records of MAD Co:
Jan. 1, 2020
Dec. 31, 2020
Payments made
670,000
Operating Expenses
Prepaid expenses
Accrued expenses
690,000
120,000
???
230,000
190,000

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