With an assumption that the company's accounting year is same as the calender year, the income statement would show $1,000 of rent expense.
<h3>What is an
income statement?</h3>
An income statement refers to a financial statement that shows a firm's income and expenditures for an accounting year.
Rent expenses = $2,400 prepaid rent / 12 months
Rent expenses = $200 per month
Rent expenses = $200 rent expense per month x 5 months (in Year 2)
Rent expenses = $1,000 rent expense
In conclusion, with an assumption that the company's accounting year is same as the calendar year, the income statement would show $1,000 of rent expense.
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Answer:
(a). A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer.
-<u> Increase in exports while no change in imports</u>.
(b). The Sony pension fund buys a bond from the U.S. Treasury.
- <u>Decrease in a net outflow of capital. Thus, it would be considered as a negative inflow/outflow</u>.
(c). An American investor buys a controlling share in a South Korean electronics firm.
- <u>Increase in Net Capital outflow for the U.S</u>.
Explanation:
Exports are described as the selling of domestic goods to a foreign country while Imports are characterized as the process of bringing in foreign goods to the domestic country. And Capital outflow is defined as the exact flow of funds from domestic to foreign and foreign to the domestic country.
In the first case, the purchase reflects a rise in exports as the domestic product is sold to the foreign country. In the second situation, the net outflow of the capital would decreases as it demonstrates a foreign purchase of a domestic asset. In the third example, the American investors' purchase of a South Korean firm demonstrates a domestic purchase of a foreign asset and thus, the net capital outflow would rise.
Answer:
Premium
Explanation:
Whenever a bond sells for more than its face value, it sells at a premium, which means that the investors are willing to pay more for the bond than its face value. This happens when the coupon payment percentage on the bond are higher than the yield to maturity of the bond, because the investors required return is the yield to maturity, when the bond pays more than the required return the investors are willing to pay more for the bond.
Answer:
Explanation:
A)
Dr Cash 3250000
Cr Revenue 325000 [500*6500]
Dr Warranty expense 20000
Cr Liabilities on warranties 20000
B)
Dr Cash 3250000
Cr Revenue 3189000
Cr Unearned warranty revenue 61000
Dr Warranty expense 20000
Cr Cash 20000
Dr Unearned warranty revenue 30500
Cr Warranty revenue 30500[20000/40000*61000]
