and made the following payments to Cant Properties: 9. On June 1, 20x0, Entity A entered into a five-year nonrenewable lease, commencing on that date, for office space (AICPA) 9. On June 1, 20x0, Bonus to obtain lease 30,000 First month's rent 10,000 Last month's rent s10,000 In its statement of financial performance for the year ended June 30, 20x0, what amount should Entity A report as rent expense? a. 10,000 (AICPA) b. 10,500 с. 40,000 d. 50,000
and made the following payments to Cant Properties: 9. On June 1, 20x0, Entity A entered into a five-year nonrenewable lease, commencing on that date, for office space (AICPA) 9. On June 1, 20x0, Bonus to obtain lease 30,000 First month's rent 10,000 Last month's rent s10,000 In its statement of financial performance for the year ended June 30, 20x0, what amount should Entity A report as rent expense? a. 10,000 (AICPA) b. 10,500 с. 40,000 d. 50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:9. On June 1, 20x0, Entity A entered into a five-year
nonrenewable lease, commencing on that date, for office s
and made the following payments to Cant Properties:
(AICPA)
9. On June 1, 20x0, Entity A
space
Bonus to obtain lease
bns
30,000
First month's rent
10,000
nsm10,000
Last month's rent
In its statement of financial performance for the year ended June
30, 20x0, what amount should Entity A report as rent expense?
a. 10,000
(AICPA)
b. 10,500
c. 40,000
d. 50,000
333
Leases
10. On July 1, 20x6, Entity A leased a delivery truck from Entity B
under a 3-year operating lease. Total rent for the term of the
lease will be P36,000, payable as follows:
12 months at P 500 = P 6,000
12 months at P 750 = 9,000
12 months at P1,750 = 21,000
All payments were made when due. In Entity B's June 30, 20x8,
balance sheet, the accrued rent receivable should be reported as
с. 12,000
d. 21,000
a. 0
b. 9,000
(AICPA)
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