Ada Company owns and manages apartments. On signing a lease, each tenant must pay the first month and last month rent and a Php50,000 refundable security deposit. The security deposit is rarely refundable in total because cleaning costs of Php15,000 per apartment are almost always deducted. About 30% of the time, the tenants are also charged for damages to the apartment which typically cost Php10,000. If a one-year lease is signed on a Php90,000 per month apartment, what amount should be reported as refundable security deposit?

Ada Company owns and manages apartments. On signing a lease, each tenant must pay the first month and last month rent and a Php50,000 refundable security deposit. The security deposit is rarely refundable in total because cleaning costs of Php15,000 per apartment are almost always deducted. About 30% of the time, the tenants are also charged for damages to the apartment which typically cost Php10,000. If a one-year lease is signed on a Php90,000 per month apartment, what amount should be reported as refundable security deposit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A7 3. An employee obtained a loan of P100,000 at a rate of 6% compounded annually in order to build a house. How much must he pay monthly to amortize the loan within a period of 10 years? ANSWER =1,101.80
what is the effective rent for a 6-year net lease with a fixed at $24/sf in which the landlord agrees to give the tenant one year free rent up front and pay for $7/sf worth of tenant improvements if the discount rate is 8%?
A commercial property has expected first year NOI of $48,000. If the required debt coverage ratio is 1.25 for a mortgage at 6% with 30-year amortization, what is the maximum loan amount? O $500,375 O $533,733 O $567,091 O $600,450 O $633,808
Consider a 30-year, fixed-rate mortgage for $120,000 at a nominal rate of 6% with monthly payments. If the borrower pays an additional $120 with each monthly payment, what will be the amount of the last monthly payment? A. $839.46 B. $357.77 C. $843.66 D. $419.85 E. $355.99 F. $420.90 G. $418.81 H. $841.55
How much will you pay on a 25 year, $400,000 mortgage if you make monthly payment at the beginning of month? Interest is 3.5% compounded annually. O a. $1,968 O b. $1,973 OC. $1,979 O d. $1,997 O e. $1,991
What is the maximum bond for a property when the weekly rent is $1200?
am. 113.
Question 3. Assume that ABC Islamic bank provides ‏Murabahah financing to ‏Hanif for the purpose of house purchase, amounting to RM500,000 at a ‏constant rate of return 9% for a period of 5 years. At the end of the contract, Hanif owes ABC bank amounting to RM50,000. As part of the normal requirements, the customers will be charged a penalty fee 4% per annum for any outstanding amount due at the end of the contract and amount collected is normally disbursed as charity. Required: Show the extract of the balance sheet and income statement of ABC bank from the beginning till the end of the contract, showing the amount of net receivable and Murabahah income. Prepare journal entries for all the above transactions in the book of ABC bank, including the treatment for penalty fee.
Kk.197.
The interest on a loan of R2 000 to be repaid
If lease payments on an office call for $1,550 per month (paid at the beginning of the month) for 24 months, what is the current value of the lease to the landlord. Assume an annual discount rate of 15 percent. Ans.
A tenter with S 1189.08 has a one year lease. The landlord is willing to accept two payment options. )S 1169.08 now, or i)S 100 at the beginning of each month for twelve months What nommal annual interest rate compounded monthly would be required for the two options to have the same present value? Annual nominal interest rate = %?