On June 1,2019,Starbucks Paid the Rent of $66,000 for 40

question 93

Multiple Choice

On June 1,2019,Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California.The rent covers the period,June 1,2019 through November 30,2019.On June 1,Starbucks will record ________.On June 30,Starbucks will record ________.

• A)Rent Expense of $66,000;nothing
• B)nothing;Rent Expense of $66,000
• C)nothing;Rent Expense of $11,000
• D)Prepaid Rent of $66,000;Rent Expense of $11,000

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Definitions:

Resource Demand

The desire and ability of consumers or firms to acquire specific quantities of resources at various prices.

Marginal Revenue Product

The increased earnings resulting from the application of an extra unit of a resource, such as capital or labor.

Demand Schedule

A diagram indicating the volume of goods or services that purchasers intend and can afford to buy across a range of prices.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product that is identical across suppliers.