02 Jeson Company paid $4.B00 for one year's r and its statement of cash fows would...

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02 Jeson Company paid $4.B00 for one years r and its statement of cash fows would report cash outfiow for rent, respectively, of ent in advance beginning on October 1, Year t Jasons Year 1 income statement would report rent expense, 4800 S4800 1200 51200 1200 54.800 3 5 7 8 9 0

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Answer 1

Answer #1

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Rent Expense would show the amount of rent expense ‘incurred’ for the period.
Cash outflows for rent would show the amount of cash actually paid.
Period expired for Rent in Year 1 = 3 months [From 1 Oct to 31 Dec]
Rent Expense for 3 month = 4800 x 3/12 = $ 1200
Cash paid for Rent = Outflows = $ 4800
Correct Answer = Option #3: $ 1200 of Rent expense , and $ 4800 of Cash outflows

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Answer 2

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