A sole trader whose financial year end is 31 December rents the premises from which she operates. During 20X1 she paid rent totalling £15670, which includes one bill for £4320 for the quarter ended 28 February 20X2. After making the appropriate adjustment at 31 December 20X1, the business's financial statements will include the following: Rent expense £17110; Accrual £1440 Rent expense £18550; Accrual £2880 Rent expense £14230; Prepayment £1440 Rent expense £12790; Prepayment £2880
A sole trader whose financial year end is 31 December rents the premises from which she operates. During 20X1 she paid rent totalling £15670, which includes one bill for £4320 for the quarter ended 28 February 20X2. After making the appropriate adjustment at 31 December 20X1, the business's financial statements will include the following: Rent expense £17110; Accrual £1440 Rent expense £18550; Accrual £2880 Rent expense £14230; Prepayment £1440 Rent expense £12790; Prepayment £2880
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A sole trader whose financial year end is 31 December rents the premises from which she operates. During 20X1 she paid rent totalling £15670, which includes one bill for £4320 for the quarter ended 28 February 20X2.
After making the appropriate adjustment at 31 December 20X1, the business's financial statements will include the following:
| Rent expense £17110; Accrual £1440 | |
| Rent expense £18550; Accrual £2880 | |
| Rent expense £14230; Prepayment £1440 | |
| Rent expense £12790; Prepayment £2880 |
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