Option D Option A Option B Option C All of these. Purchasing goods and services

Question

Option D Option A Option B Option C All of these. Purchasing goods and services from suppliers on credit. Purchasing property, plant and equipment on credit. Purchasing accounts for cash.



3. Assume that on September 1, 2013, a 6-month rent payment for $3,000 per month (for a total of $18,000) was made with respect to a commercial lease that the company entered into on that date as a tenant. The company took occupancy of the rented space immediately. The lease term will expire on February 28, 2014. The $18,000 payment was recorded as a debit to Prepaid Rent on September 1, 2013. The adjusting entry on December 31, 2013, is as follows:

Option D Option A Option B Option C Bonner's, Inc. borrowed $12,000 for 4 months on a discount basis. The lender used an interest rate of 8% to calculate the discount. The amount of cash Bonner's, Inc. actually had available to use from this loan was: An Accounts Payable normally results from which of the following transactions?

Explanation / Answer

1. 11680 (8%*12,000 - total interst for a year. Interest for 4 months = 960/3 = 320 ) . Amount available to use (12000-320)

2. Purchasing goods and services from suppliers on credit.

3. Option D

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