Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $18,600 ($1,550/month) in advance on October 1. 3. Calculate the year-end adjusted balances of prepaid rent and rent expense (assuming the balance of Prepaid Rent at the beginning of the year is $0).

Debit Rent expense    $4,650

Credit Prepaid account   $4,650

Explanation:

The rental income received in advance affects only assets side of the accounting equation. As cash was paid for another asset; prepaid insurance.

When the cash was paid in advance on October 1,

Debit Prepaid account $18,600

Credit Cash account $18,600

At year end (after 3 months), the rent expense would be

= $1,550 × 3 = $4,650

Year end entries required would be

Debit Rent expense    $4,650

Credit Prepaid account   $4,650

answer; offer in store wine and beer samples;

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.