Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

On October 1, Year 1, Jason Company paid $3,600 to lease office space for one year beginning immediately. What is the cash outflow for rent that would be reported on the Year 1 statement of cash flows

Sagot :

ayokenny2001

The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $2,700

What is cashflow?

This is the amount of cash , which a company receives or gives out by the way of payments to its creditors.

Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.

The duration of the payment is 12 months, hence  

Monthly amortization

= $3,600 / 12

= $300

Rent expense for year 1

= $300 × 3

= $900

The ending balance in the prepaid rent account will be  

= $3,600 - $900

= $2,700

This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.

Hence, the cash outflow for rent that would be reported on the Year 1 statement of cash flows is $2,700

Learn more about cashflow here : https://brainly.com/question/14723642

#SPJ1

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.