for the last two years of the lease.expiration of the lease but will be applied to payment of rentliability in the December 31, 2020 statement of financialAt inception of the lease, Glen Company received P2,000,000This deposit will not be returned to Dix Company uponCompany for a ten-year term at an annual rental of P500,000.covering the first two years' rent of P1,000,000 and a securityProblem 12-17 (AICPA Adapted)On January 1, 2020, Glen Company leased a building to Dixdeposit of P1,000,000.What amount should be reported as current and noncurrentliability in the December 31, 2020 statement of financialposition?Current liabilityNoncurrent liability2,000,0001,000,0001,000,000500,000a.500,0001,000,0001,000,000b.9/19C.d.

Solution: Total amount received by Glen company = P2,000,000 Amount against two years rent =…

liability in the December 31, 2020 statement of financial expiration of the lease but will be applied to payment of rent for the last two years of the lease. At inception of the lease, Glen Company received P2,000,000 This deposit will not be returned to Dix Company upon Company for a ten-year term at an annual rental of P500,000. covering the first two years' rent of P1,000,000 and a security Company leased a building to Dix Minception of the lease, Glen Company received P2,000,000 deposit of P1,000,000. What amount should be reported as current and noncurrent liability in the December 31, 2020 statement of financial Current liability

liability in the December 31, 2020 statement of financial expiration of the lease but will be applied to payment of rent for the last two years of the lease. At inception of the lease, Glen Company received P2,000,000 This deposit will not be returned to Dix Company upon Company for a ten-year term at an annual rental of P500,000. covering the first two years' rent of P1,000,000 and a security Company leased a building to Dix Minception of the lease, Glen Company received P2,000,000 deposit of P1,000,000. What amount should be reported as current and noncurrent liability in the December 31, 2020 statement of financial Current liability

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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