(AIC 10. On January 1, 20x6, Park Co. signed a for office space at P96,000 per year. The lease included a provision for additional rent of 5% of annual company sales in excess of P500,000. Park's sales for the year ended December 10-year operating lease 31, 20x6, were P600,000. Upon execution of the lease, Park paid P24,000 as a bonus for the lease. Park's rent expense for the year ended December 31, 20x6, is d. 125,000 a. 98,400 (AICPA) b. 101,000 c. 103,400
(AIC 10. On January 1, 20x6, Park Co. signed a for office space at P96,000 per year. The lease included a provision for additional rent of 5% of annual company sales in excess of P500,000. Park's sales for the year ended December 10-year operating lease 31, 20x6, were P600,000. Upon execution of the lease, Park paid P24,000 as a bonus for the lease. Park's rent expense for the year ended December 31, 20x6, is d. 125,000 a. 98,400 (AICPA) b. 101,000 c. 103,400
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 5RE: Use the information in RE20-3. Prepare the journal entries that Garvey Company would make in the...
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![(AIC
10. On January 1, 20x6, Park Co. signed a
for office space at P96,000 per year. The lease included a
provision for additional rent of 5% of annual company sales in
excess of P500,000. Park's sales for the year ended December
10-year operating lease
31, 20x6, were P600,000. Upon execution of the lease, Park
paid P24,000 as a bonus for the lease. Park's rent expense for
the year ended December 31, 20x6, is
d. 125,000
a. 98,400
(AICPA)
b. 101,000
c. 103,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc34dfb89-3042-4f1b-9e15-6edbb42045b6%2F49cd6ace-2faa-4304-af62-919ed030fd9f%2Fahqbj6.jpeg&w=3840&q=75)
Transcribed Image Text:(AIC
10. On January 1, 20x6, Park Co. signed a
for office space at P96,000 per year. The lease included a
provision for additional rent of 5% of annual company sales in
excess of P500,000. Park's sales for the year ended December
10-year operating lease
31, 20x6, were P600,000. Upon execution of the lease, Park
paid P24,000 as a bonus for the lease. Park's rent expense for
the year ended December 31, 20x6, is
d. 125,000
a. 98,400
(AICPA)
b. 101,000
c. 103,400
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