On December 1, 2019, an advance rent payment of $14,400, representing a three-month prepayment for the months of December, January, and February, was received in cash from the companys tenant

On December 1, 2019, an advance rent payment of $14,400, representing a three-month prepayment for the months of December, January, and February, was received in cash from the company's tenant. Required: Complete the below table. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Use the horizontal model to record the effects of the following items: a. The three months of rent collected in advance on December 1, 2019. Balance Sheet Assets Liabilities Income Statement Revenues Stockholders' Equity Net income Expenses b. The adjustment that will be made at the end of each month to show the amount of rent "earned" during the month. Balance Sheet Assets Liabilities Stockholders' Equity Income Statement Revenues Net income Expenses 2 On July 1, 2019, $2.5 million face amount of 7%, 10-year bonds were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were slightly higher than 7% when the bonds were sold. 5 points Required: a. How much interest will be paid annually on these bonds? (Enter your answer in whole dollar, not in millions) b. Were the bonds issued at a premium or discount? c. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? eBook a Annual interest payment b. Bonds issued C. Annual interest expense will be Hint Ask