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
1 answer:
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 = $20002 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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