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docker41 [41]
3 years ago
11

On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is the same amount each m

onth). Movers' year-end financial statements as of December 31, 2019 will show:__________.
Mathematics
1 answer:
Lana71 [14]3 years ago
5 0

Movers' year-end financial statements as of December 31, 2019 will show the remaining amount $20,000 after the deduction of rent $4000 for the months November and December of year 2019.

<u>Step-by-step explanation</u>:

  • Rent paid for 2 years = $24,000
  • The rent per month = $24,000 / 12 months
  • Rent = $2,000 per month

Rent from November 1, 2019 to December 31, 2019 = $2000\times2 months

                                                                                      = $ 4000

∴ Movers' year-end financial statements as of December 31, 2019 will show the deduction of rent amount for last two months of year 2019.

By year-end, the final statement = $24,000 - $400 = $20,000 remaining.

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