A.
Adjusting entries refers to the entries that are made at the end of an accounting period in accordance with revenue recognition principle, and expenses recognition principle. All adjusting entries affect at least one income statement account (revenue or expense), and one
Prepaid expenses:
The prepaid expenses are those expenses which are paid in advance, before they are incurred. These are treated as asset for the business.
To determine: The rights acquired at November 1 represents an asset or an expense.
B.
To justify: The reason for debiting the rent expense at the time of payment.

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Chapter 3 Solutions
Bundle: Financial & Managerial Accounting, Loose-leaf Version, 14th + Working Papers For Warren/reeve/duchac's Corporate Financial Accounting, 14th + ... Financial & Managerial Accounting,
- The Armstrong Machinery Company is preparing its manufacturing overhead budget for the fourth quarter of the year. The budgeted variable factory overhead is $6.10 per direct labor-hour; the budgeted fixed factory overhead is $82,500 per month, of which $15,300 is factory depreciation. If the budgeted direct labor time for November is 8,200 hours, then what is the total budgeted factory overhead for November?arrow_forwardUse the following table of government officers travelling and mileage allowance to answer questions 1 and 2. Travel Allowance and Mileage: Government Government Post Annual Travel Allowance Mileage Genuine travelling officers $457,920 $36 per km Genuine travelling officers (no mileage) $569,635 Not applicable Supervisors $335,167 $36 per km Casual miles (mileage without travelling allowances) Not applicable $43 per km Commuted $311,040 Not applicable Marcia Bell is a project manager. She drives her vehicle to different sites and submitted a claim for 2,450 km for the month of January. Calculate her travelling allowance for January. A.$116,130 B.$423,367 C.$133,280 D.$126,360 Lisa Chapelle made 2 site visits, 750 km each, in the month of May. In between site visits, she picked up her son at the day care which amounted to 200 km. What would be her casual travelling allowance for May? A.$32,250 B.$40,850 C.$73,100 D.$64,500…arrow_forwardSubject general accountingarrow_forward
- Don't use ai solution given correct answer general accounting questionarrow_forwardUse the following table of government officers travelling and mileage allowance to answer the question Travel Allowance and Mileage: Government Government Post Annual Travel Allowance Mileage Genuine travelling officers $457,920 $36 per km Genuine travelling officers (no mileage) $569,635 Not applicable Supervisors $335,167 $36 per km Casual miles (mileage without travelling allowances) Not applicable $43 per km Commuted $311,040 Not applicable Marcia Bell is a project manager. She drives her vehicle to different sites and submitted a claim for 2,450 km for the month of January. Calculate her travelling allowance for January. A. $116,130 B. $423,367 C. $133,280 D. $126,360arrow_forwardSubject: general accountingarrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning

