Alpha Software Inc. made an advance rent payment of $6,000 for its warehouse. The accounting period for which the company paid the rent was from January to June 2014. The accountant recorded a rent payment of $1,000 in the month of January, 2014. Which accounting principle guides this action?

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Adelaide

Mathematics

26 August, 22:40

Alpha Software Inc. made an advance rent payment of $6,000 for its warehouse. The accounting period for which the company paid the rent was from January to June 2014. The accountant recorded a rent payment of $1,000 in the month of January, 2014. Which accounting principle guides this action?

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Chaim Alvarez · Answer 1

A real estate agency offers three apartments for rent in New Mexico City. The expected total revenue per month from monthly rentals for the three apartments is $1,600. The individual owners of these apartments bear the monthly maintenance costs of 20% of the rent for the first two apartments and 25% of the rent for the third apartment, which is a total amount of $345. The agency charges a monthly fee equal to 10% of the rent for apartments 1 and 3 and a fee equal to 20% of the rent for apartment 2. The monthly rent plus agency fees totals $1,820. Let x, y, and z represent the monthly rental for the first, second, and third apartments, respectively.