A Corporation Operates a Retail Store and Must Determine the Correct

question 126

Multiple Choice

A corporation operates a retail store and must determine the correct December 31, year 1, year-end accrual for the following expenses: 1. The store lease calls for fixed rent of $1,000 per month, payable at the beginning of the month, and additional rent equal to 6 percent of net sales over $200,000 per calendar year, payable on January 31 of the following year. Net sales for year 1 are $800,000.
2) The corporation has personal property subject to a city property tax. The city's fiscal year runs from July 1 to June 30 and the tax, assessed at 3 percent of personal property on hand at April 30, is payable on June 30. The corporation estimates that its personal property tax will amount to $6,000 for the city's fiscal year ending June 30, year 2.
In its December 31, year 1, balance sheet, the corporation should report accrued expenses of:

• A) $39,000
• B) $39,600
• C) $51,000
• D) $51,600

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Definitions:

Auditory Processing

The mechanism by which the brain interprets and makes sense of sound information received from the ears.

Language Acquisition

The process by which humans gain the ability to perceive and comprehend language, as well as to produce and use words and sentences to communicate.

Critical Time Period

A specific phase in an organism's life during which it is particularly sensitive to environmental stimuli that shape development.

Auditory Pathway

The sequence of neural structures that sound waves travel through to be processed as sounds in the brain, from the ear to the auditory cortex.