Question

5. Determine the cash payments made for rent based on the following information: Prepaid rent Balance, beginning of the period $3,000 Balance, end of the period 2,500 Assume that $5,000 of rent expired during the period and that all rent payments were made in cash. a. $5,500 b. $5,000 $4,500 . $7,500 6. On January 1, 2016 the Ultamira Safe Company paid $100 for a five year insurance policy. The company should report which of the following sets of account balances on its December 31, 2018 financial statements? a. Balance Sheet Prepaid insurance $100; Prepaid insurance $60; Prepaid insurance $40; Prepaid insurance $40; Income Statement Insurance expense $100 Insurance expense $20 Insurance expense $20 Insurance expense $60 d. Wigmonent 7. The 2018 beginning and ending account balances for Adams Furniture Company Ltd. Are presented below: 1/1/18 31/12/18 Assets $734,400 $1,161,600 Liabilities 326,400 456,000 Common shares 168,000 484,800 morbum wameron Assuming that there were no other charges to retained earnings other than for a dividend payment of $62,400 declared in 2018, the net income for 2018 should be 199.000 tasionar b.) $43,200 . $62,400 d. $27,000 $19,200 ork WASDP Warnunara - Aronico BoA 000.00 ZU

Hi there, can you please answer questions 5-7. they very short questions :).

Also, the circled answers may or may not be correct.

Answer 1

5)
	Prepaid Rent
	Endo of the period	2500
	Add:
	Rent for the period	5000
	less:
	Begning of the period	3000
	Cash Paid	4500
	Correct Opption: A
6)	Balance of prepaid insurance on 31-12-2018
	Total Paid	$        100
	Less;
	Expenses for 2016 (100/5)	$          20
	Expenses for 2017 (100/5)	$          20
	Expenses for 2017 (100/5)	$          20
	Balance	$          40
	Insurance expenses per year = $100/5
	=$20 per year
	Therefore
	Correct Option: C
7)	Retained Earing at the end ($1161600-456000-484800)			$        2,20,800
	Add:
	Dividend			$            62,400
	Less:
	Retained Earing at the beginning ($734400-326400-168000)			$        2,40,000
	Net Income			$            43,200
	Correct Option: B