Help me answer these 3 question24.Harry Magic Company has extra space in the warehouse and agrees to rent it out to Colorful Enterprise at a rate of P10,000 per month. The space was made available to Colorful Enterprise beginning September 1, 2020. Under the terms of the agreement, the lease contract is for 1-year and Colorful shall pay the month’s rent at the 5th day after the end of each month. Assume that Harry Magic Company prepares adjusting entries on December 31, 2020. What figures should appear in the entity’s financial statements for the year ended? Select one:a.Income statement - P10,000 Rent Income; Statement of Financial Position - P40,000 Rent Receivableb.Income statement - P10,000 Rent Expense; Statement of Financial Position - P10,000 Rent Payablec.Income statement - P40,000 Rent Income; Statement of Financial Position - P10,000 Rent Receivabled.Income statement - P40,000 Rent Expense; Statement of Financial Position - P40,000 Rent Payable 25.Hive Company borrow a 12%, 90-day P100,000 from Mayaman Bank on March 1, 2020. The interest for 90 days was deducted from the loan in advance. Normally Mayaman bank computes interest using the ordinary interest. It is the policy of the company to use the asset approach in recording prepayments and liability approach in recording advance collection of income. Assume that Hive Company prepares adjusting entries only four times a year: March 31, June 30, Sept. 30 and December 31. How much is the amount of interest that was deducted from the loan?Select one:a.P3,000b.P12,000c.P6,000d.P4,000

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Help me answer these 3 question

24.

Harry Magic Company has extra space in the warehouse and agrees to rent it out to Colorful Enterprise at a rate of P10,000 per month. The space was made available to Colorful Enterprise beginning September 1, 2020. Under the terms of the agreement, the lease contract is for 1-year and Colorful shall pay the month’s rent at the 5th day after the end of each month. Assume that Harry Magic Company prepares adjusting entries on December 31, 2020. What figures should appear in the entity’s financial statements for the year ended?

Select one:

Income statement - P10,000 Rent Income; Statement of Financial Position - P40,000 Rent Receivable

Income statement - P10,000 Rent Expense; Statement of Financial Position - P10,000 Rent Payable

Income statement - P40,000 Rent Income; Statement of Financial Position - P10,000 Rent Receivable

Income statement - P40,000 Rent Expense; Statement of Financial Position - P40,000 Rent Payable

25.

Hive Company borrow a 12%, 90-day P100,000 from Mayaman Bank on March 1, 2020. The interest for 90 days was deducted from the loan in advance. Normally Mayaman bank computes interest using the ordinary interest. It is the policy of the company to use the asset approach in recording prepayments and liability approach in recording advance collection of income. Assume that Hive Company prepares adjusting entries only four times a year: March 31, June 30, Sept. 30 and December 31. How much is the amount of interest that was deducted from the loan?

Select one:

P3,000

P12,000

P6,000

P4,000

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