LARRY KOOPA COMPANY leased a new machine from a lessor on July 01, 2021. The lease expires on June 30, 2022. The annual rental is P 900,000. Additionally, on July 01, 2021, LARRY KOOPA Company paid P 100,000 as a lease bonus and P 250,000. as a security deposit to be refunded upon expiration of the lease. a. What is the amount to be recorded as right-of-use asset on July 1, 2021? b. What will be reported as expenses on the lease to be included in the income statement

LARRY KOOPA COMPANY leased a new machine from a lessor on July 01, 2021. The lease expires on June 30, 2022. The annual rental is P 900,000. Additionally, on July 01, 2021, LARRY KOOPA Company paid P 100,000 as a lease bonus and P 250,000. as a security deposit to be refunded upon expiration of the lease. a. What is the amount to be recorded as right-of-use asset on July 1, 2021? b. What will be reported as expenses on the lease to be included in the income statement

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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