Toby Toy Store has noticed the following items that need to be considered for its income statement for the year ended December 31, 2019: Commissions of $3,000 for salespeople who made sales in December will be paid on January 3, 2020. The phone bill of $400 for December was received and will be paid on January 20, 2020.
The store rent of $2,000 for January 2020 was paid on December 28, 2019.
At the beginning of November, Toby paid $1,500 for advertising in a monthly magazine that is distributed in November and December of 2019, and January of 2020.

What is the proper amount of expenses to be included in the income statement for the year?
a. $4,400.
b. $6,900.
c. $6,400.
d. $5,900.

$4400

Explanation:

The proper amount of expenses to be included in the income statement for the year will be calculated as:

Commissions for salespeople who made sales in December = $3000

Add: Phone bill = $400

Add: Advertisement = $1000

Total expense = $3000 + $400 + $1000 = $4400

N.B: The commission and telephone charge were incurred in December 2019 and should be added.

The store rent of $2,000 for January 2020 was paid on December 28, 2019. This won't be added since it was for 2020.

Advertisiment of $1,500 was paid for November 2019, December 2019 and January 2020. We are concerned with that of November and December 2019. This will be: $1500 × 2/3 = $1000

answer; tech (a) is correct;

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself