Question

The Starbucks store Emily works at made $12,500.00 in
sales today. 20% of sales cover employee salaries, 30%
cover overhead charges. How much money is left as profit
once those two expenses are paid (HELP NEEDED)

Answer 1

Answer:Part (1) November 1

The amount paid is the rental advances and must be recorded as advances which falls under the current asset category:

Dr Rental Advances $90,000

Cr        Bank account             $90,000

Part (2) December 31

On this date, some of the rental advances paid would be realized as expenses from the period November 1, 20X1 to December 31, 20X2.

This time duration constitutes to 2 months and the rental advance made on November were for five months. Out of these 5 months, 2 months share must be recognized as expense which is

The relevant entry would be:

Dr Rental Expenses $36,000

Cr                Rental Advances $36,000

Step-by-step explanation:

HOPE THIS HELPS!!