Question 6 The King Street Zoo operates a drive-through tourist attraction in To
ID: 2394235 • Letter: Q
Question
Question 6
The King Street Zoo operates a drive-through tourist attraction in Toronto. The company adjusts its
accounts at the end of each month. The selected accounts appearing below reflect balances after
adjusting entries were prepared on April 30. The adjusted trial balance shows the following:
Prepaid Rent
$12,000
Feed Shed
$40,000
Accumulated Depreciation – Feed Shed
$6,000
Unearned Revenue
$500
Other data:
1. 4 months rent had been prepared on April 1.
2. The Feed Shed is being depreciated at $7,200 per year.
3. The unearned revenue represents tickets sold for future zoo visits. The tickets sold were at $4.00 each on April 1. During April, 25 of the tickets were used by customers
Instructions
Calculate the following:
1. monthly rent expense
The King Street Zoo operates a drive-through tourist attraction in Toronto. The company adjusts its
accounts at the end of each month. The selected accounts appearing below reflect balances after
adjusting entries were prepared on April 30. The adjusted trial balance shows the following:
Prepaid Rent
$12,000
Feed Shed
$40,000
Accumulated Depreciation – Feed Shed
$6,000
Unearned Revenue
$500
Other data:
1. 4 months rent had been prepared on April 1.
2. The Feed Shed is being depreciated at $7,200 per year.
3. The unearned revenue represents tickets sold for future zoo visits. The tickets sold were at $4.00 each on April 1. During April, 25 of the tickets were used by customers
Instructions
Calculate the following:
1. monthly rent expense
Explanation / Answer
prepaid rent balance on April 30 after adjusting for april rent expense is $12,000.
which means that remaining3 months rent is $12,000...(since out of 4 months originally paid, april's rent is already adjusted).
so monthly rent expense = $12,000 / 3 months
=>$4,000.
monthly rent expense = $4,000 per month.
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