Question

Jason Company paid $7,200 for one years rent in advance beginning on October 1. Year 1. Jasons Year 1 income statement woul
0 0
Add a comment Improve this question Transcribed image text
Answer #1

As per accrual concept of accounting, expenses must be recorded in the year in which it is incurred.

Accounting concept suggests that we should follow accrual concept so that all expenses related to the year are recored in the same year and not when it is paid. This helps us to ensure accuracy in the ascertainment of profit of the business.

Hence, rent paid in advance for the same year should be recorded fully in that year since it relates to the same.

Therefore, amount of $ 7,200 should be reported in the income statement of Jason Company.

Add a comment
Know the answer?
Add Answer to:
Jason Company paid $7,200 for one year's rent in advance beginning on October 1. Year 1....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT