Question

On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is the same amount each month). Movers' year-end financial statements as of December 31, 2019 will show:__________.

Answer 1

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.

Step-by-step explanation:

• 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 = $2000$\times$2 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.