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craincrew5239
craincrew5239
31.10.2019 • 
Mathematics

Kemp co. must determine the december 31, year 2year-end accruals for advertising and rent expenses. a $500advertising bill was received january 7, year 3, comprisingcosts of $375 for advertisements in december year 2 issues,and $125 for advertisements in january year 3 issues of thenewspaper.a store lease, effective december 16, year 1, calls forfixed rent of $1,200 per month, payable one month from theeffective date and monthly thereafter. in addition, rent equalto 5% of net sales over $300,000 per calendar year is payableon january 31 of the following year. net sales for year 2 were$550,000.in its december 31, year 2 balance sheet, kemp shouldreport accrued liabilities ofa. $12,875b. $13,000c. $13,100d. $13,475

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