Question 1:

On April 1, 2016, SBD Corp. paid $120,000 for rent on warehouse space one year in advance. On October 1, 2016, SBD Corp. entered into a lease agreement to rent out a different warehouse it was no longer using. This agreement calls for SBD to receive $8,000 per month from the lessee, due and payable at the end of the 4-month lease term. At December 31, 2016, none of the rental payments from the lessee had yet been received.

If SBD makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 balance sheet as prepaid rent and rent receivable, respectively?

The answer is $30,000 and $24,000, but I don't quite understand. Could you please explain that for me?

Thank you so much! ^^

Question 2:

Use the below balance sheet and income statement to answer the following questions regarding Hoya's 2015 operations. Hoya Company's Balance Sheet as of December 31, 2015 12/31/15 12/31/14 Cash $ 6,000 $ 7,000 Accounts Receivable 62,000 51,000 Short-term Investments 35,000 18,000 Inventory 45,000 64,000 Equipment 154,000 130,000 (Accumulated Depreciation) (35,000) (25,000) Copyrights 46,000 50,000 Total Assets $ 313,000 $ 295,000 Accounts Payable $ 46,000 $ 40,000 Income Taxes Payable 12,000 10,000 Notes Payable - Short Term 8,000 10,000 Notes Payable - Long Term 60,000 69,000 Common Stock 130,000 130,000 Retained Earnings 57,000 36,000 Total Liabilities & Equity $ 313,000 $ 295,000Haya Company's Income Statement For the Period January 1 - December 31, 2015 Sales 16 338,150 Cost of Goods Sold \"(l Gross Margin 163,150 Operating Expenses ___@@1 Operating Income 43,150 Interest Expense (11.400) Gain on Sale of Equipment \"ig Income Before Taxes 33,750 Income Tax Expense WEE) Net Income , Additional Information: . DeprecIation expense 8: amortization expense are included in operang expenses. I Equipment was sold during 2015 that had a cost of $20,000 and was 70% depreciated. I There were no asset impairments during 2015. I Accounts payable only relates to Inventory purchases. I The notes are payable to Great Bank. I No copyrights were purchased or sold during 2015. I The rm reports under US GAAP. How much net cash did Hoya receive from issuing & repaying debt during 2015