I'm unsure of how to go about this exercise. I'm not sure, how to start.

Exercise 8-Incidents For each of the events listed below, state separately state they affect the following parts of the firm's financial statement: Items in the closing balance Items in the income statement during the year Cash flow statement The income statement effects must be stated both in an income statement classified by nature and by function. For simplicity, disregard VAT and possible derived effects on tax entries in the annual accounts. 1. On July 1, a firm prepays its fire insurance premium for the next 12 months. The amount is 2. The same firm receives payment of rent on November 1. The amount, DKK 270, makes up 3. A firm buys raw materials for DKR 1,000 in cash. Of these materials items costing DKK 700 DKK 240. The company's accounting year is the calendar year. the tenant's rent for November, December and January. are used for production of goods sold in the financial year, but the residual stock must be written down to a value of DKK 250. The company (a machine producing company) sells a machine (a finished good) for DKK 10 million with the following payment conditions: 30% to be paid when the order is placed; 60% to be paid when the order is delivered; and 10% to be paid 60 days after delivery. The company received the order earlier this year, and the order was delivered a few days ago. 4. 5. At the beginning of the year, a firm bought a production machine for 12,000 in cash, and it was determined to depreciate the machine by use of the straight-line method over a period of 8 years to a scrap value of 0. Exercise 8-Incidents For each of the events listed below, state separately state they affect the following parts of the firm's financial statement: Items in the closing balance Items in the income statement during the year Cash flow statement The income statement effects must be stated both in an income statement classified by nature and by function. For simplicity, disregard VAT and possible derived effects on tax entries in the annual accounts. 1. On July 1, a firm prepays its fire insurance premium for the next 12 months. The amount is 2. The same firm receives payment of rent on November 1. The amount, DKK 270, makes up 3. A firm buys raw materials for DKR 1,000 in cash. Of these materials items costing DKK 700 DKK 240. The company's accounting year is the calendar year. the tenant's rent for November, December and January. are used for production of goods sold in the financial year, but the residual stock must be written down to a value of DKK 250. The company (a machine producing company) sells a machine (a finished good) for DKK 10 million with the following payment conditions: 30% to be paid when the order is placed; 60% to be paid when the order is delivered; and 10% to be paid 60 days after delivery. The company received the order earlier this year, and the order was delivered a few days ago. 4. 5. At the beginning of the year, a firm bought a production machine for 12,000 in cash, and it was determined to depreciate the machine by use of the straight-line method over a period of 8 years to a scrap value of 0