Jason Company paid $7,200 for one year’s rent in advance beginning on October 1, 2015. Jason’s 2015 income statement would report rent expense, and its statement of cash flows would report cash outflow for rent, respectively, of
A. $7,200; $7,200
B. $1,800; $1,800
C. $1,800; $7,200
D. $1,200; $7,200
Answer:C
Jason Company paid $7,200 for one year’s rent in advance beginning on October 1, 2015. Jason’s 2015 income statement would report rent expense, and its statement of cash flows would report cash outflow for rent, respectively, of
A. $7,200; $7,200 B. $1,800; $1,800 C. $1,800; $7,200 D. $1,200; $7,200