Question

During its first month of operations, Labrador Corporation provided $10,000 of services to it customers. Its costs included rent of $1,000 and salaries and wages totaling $3,000. At the end of the month, the board of directors approved a dividend of $500. What is the total amount of expenses incurred by the company during the month?

Answer 1

Labrador Corporation incurred a total of $4,000 in expenses during its first month which includes $1,000 for rent and $3,000 for salaries and wages. Dividends are not counted as an expense.

Step-by-step explanation:

The total amount of expenses incurred by Labrador Corporation during its first month of operations includes the rent and salaries and wages paid. The rent expense was $1,000, and the salaries and wages expense came to $3,000. Therefore, when you combine both expenses, the total expenses for the month would be $4,000. Note that dividends approved by the board of directors are not considered an expense but rather a distribution of profits to shareholders, so the $500 dividend should not be included in calculating the total expenses.

Answer 2

total amount of expenses is $4000

Step-by-step explanation:

given data

provided = $10000

rent = $1000

wages = $3000

dividend = $500

to find out

total amount of expenses

solution

we here know that wages and rent is treated as an expenses and

we know dividend is like profit apportionment so it can not be expenses amount so

total amount will be express as

total amount = rent + wages ...................1

put here value in equation 1

we get total amount of expenses that is

total amount = 1000 + 3000

total amount = 4000

so total amount of expenses is $4000