On June 1. Year 1. Homlin, Inc. paid $12,000 for 12 months rent on its...
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On June 1. Year 1. Homlin, Inc. paid $12,000 for 12 months rent on its warehouse in Huntsville, Alabama. In addition, on October 1, Year 1. Hamlin pald $3,000 for a one-year insurance policy on the warehouse. Hamlin's reporting period ends on December 31st of each year Required Show how both prepaid purchases and the associated end of period adjustments at the end of Year I will attecta financial statements model in the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.) Answer is not c HAMLIN, INC. Effect of Events on Financial Statements for Year 1 Balance Sheet Stockholders Liabilities Equity Prepaid Accts. Retained Ins. Pay. Earnings + F Assets Event Cash Prepaid Rent 12.000 1. Prepaid Rent Prepaid Ins. (12,000) (3,000) + + 3,000 2. + 3. + (7,000) 1111 Rent Adj. Ins. Adj. + + + 4 (750) 2,250 0 + 0 11 + 5,000 (15,000) Bal. . tatements for Year 1 Income Statement + Revenue Expenses Net Income Statement of Cash Flows Stockholders' Equity Retained Earnings Il - 11 1 11 11 - 11 II 0 0 o
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