The balance in the prepaid rent account before adjustment at the end of the year is $16,212, which represents 6 months' rent paid on December 1. The adjusting entry required on December 31 is to:.a. debit Rent Expense, $12,000; credit Prepaid Rent $12,000.b. debit Prepaid Rent, $6,000; credit Rent Expense, $6,000.c. debit Rent Expense, $6,000; credit Prepaid Rent, $6,000. d. debit Prepaid Rent, $12,000; credit Rent Expense, $12,000.e. none of these answers are correct.

The distinction between a normal and an inferior good is

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was: