What is the rent expense in 20X4?
Question:
The Wilmington Athletic Club presented the following at the end of 20X4:
| 20X4 | 20X3 | |
| Cash | $7,995 | $6,490 |
| Rent Receivable | 570 | 230 |
| Dues Receuvable | 2,800 | 2,500 |
| Interest Receivable | 310 | 520 |
| Prepaid Rent | 150 | 250 |
| Supplies | 780 | 260 |
| Prepaid General Expenses | 350 | 510 |
| Available-for-Sale Investments | 8,800 | 8,000 |
| Furniture and Fixtures | 7,000 | 3,600 |
| Accumulated Depreciation on Furniture and Fixtures | (1,120) | (750) |
| TOTAL | $25,635 | $21,610 |
| Accounts Payable (supplies only) | $1,300 | $5,200 |
| Rent Payable | 890 | 440 |
| Interest Payable | 170 | 230 |
| Deferred Rent | 600 | 640 |
| Dues Received in Advance | 305 | 100 |
| Unearned Interest | 770 | 300 |
| Accrued General Expense | 250 | 400 |
| Notes Payable | 5,850 | 4,300 |
| Member's Equity | 15,500 | 10,000 |
| TOTAL | $25,635 | $21,610 |
Supplemental Information:
Rent revenue in 20X4 $8,500
Cash paid for rent in 20X4 $3,150
Dues revenue in 20X4 $6,550
Cash received for interest in 20X4 $940
Purchase of investments in 20X4 $4,000
Supplies expense for 20X4 $1,420
Furniture and fixtures with an original cost of $2,000 and accumulated depreciation of $800 were sold for $1,400 in 20X4.
Borrowings of $2,000 were made on notes payable in 20X4.
Cash paid for interest was $1,260 in 20X4.
There were no dividends or other distributions to members.
The only change this year in Members' Equity for the costing of the excess of accrual basis revenues over accrual basis expenses.
What is the rent expense in 20X4?
Statement Of Cash Flows:
Statement of cash flows is prepared to show changes in cash relating to operating, investing and financing activities. A cash inflow relates to an increase in cash while a cash outflow relates to a decrease in cash.
Answer and Explanation: 1
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Calculate rent expense by using the formula below.
Rent expense = Beginning prepaid rent + Cash paid for rent - Ending prepaid rent + Ending rent...
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Chapter 2 / Lesson 5Learn about statements of cash flows. Discover what a cash flow statement is and see the indirect method statement of cash flows, net cash flows, and other examples.