Since we were told that On November 1,2019 Movers Inc., paid the amount of $24,000 for a 2 years' rent which will start or begin on November 1 which means Movers' year-end financial statements as of December 31,2019 will show:
The correct answer is: identifying the problem or opportunity.
Explanation:
Identifying the problem or opportunity is the first step in the rational decision-making process. To know which direction the firm is going to take, the main issue must be pointed out so based on the possible solutions the company can provide, the first steps can be taken towards achieving the solution.
In order to determine the journal entry to pass when the bond matures,it would appropriate to first of all understand the entries posted when the bond was purchased,which is that cash was credited and long term investment account was debited.
The reverse would be the case at maturity which is that cash account would now receive an inflow,hence debited with $500,000 while the long-term investment certificate is parted with ,as a result the account should be credited as appropriate.
