On January 1, Lessor Company signed a 1-year rental with quarterly payments of P100,000 dueat the end of each quarter. In addition, the lessee must pay contingent rent of 5% of all sales inexcess of P10,000,000. The contingent rent is paid in one payment on December 31. The samelessee has used the building for the past 5 years, and in each of those years the lessee reachedthe contingent rent threshold of P10,000,000 in sales. Sales of the lessee for the first twoquarters are as follows:Quarter endedAmountMarch 31P3,200,000June 303,000,000What amount of rent income should be reflected in Lessor's quarterly income statement for thethree months ended June 30?

As far as concern with lessor we know the concept of conservatism or say prudence concept.…

Answered: In addition, the lessee must pay…

In addition, the lessee must pay contingent rer e contingent rent is paid in one payment on De for the past 5 years, and in each of those year

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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