The Following Information Is Available from the Balance Sheets at the End

question 200

Essay

The following information is available from the balance sheets at the end of 2012 and 2011 for Kitchen Equipment Company.
Net income for 2012 and 2011 was $120,000 and $460,000,respectively.No stock was issued during either year.Answer the following:

---

Definitions:

Prepaid Rent

The amount paid for rent before it is due, recorded as an asset on the balance sheet and expensed over the period the payment covers.

Rent Revenue

The income earned from leasing out properties or assets to tenants under rental agreements.

Unearned Rent

Payment received for rent before the rental period has occurred, classified as a liability until earned.

Office Supplies

Items used in offices on a regular basis for administrative tasks or operations, including pens, paper, and staplers.