Mike leased his land to Leomar for 2 years beginning July 1, 2018. Leomar would pay monthly rental of P100,000. He paid rent up to October 2018 and then defaulted for the rest of the year. 1.Under the cash method, how much was the deductible expense of Leomar in 2018? * 2.Using the same data in the preceding number, how much was the income of Mike in 2018 using cash method? * 3.Under the accrual method, how much was the income of Mike for 2018? * 4.Under the accrual method, how much was the deductible expense of Leomar in 2018? *
Mike leased his land to Leomar for 2 years beginning July 1, 2018. Leomar would pay monthly rental of P100,000. He paid rent up to October 2018 and then defaulted for the rest of the year. 1.Under the cash method, how much was the deductible expense of Leomar in 2018? * 2.Using the same data in the preceding number, how much was the income of Mike in 2018 using cash method? * 3.Under the accrual method, how much was the income of Mike for 2018? * 4.Under the accrual method, how much was the deductible expense of Leomar in 2018? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mike leased his land to Leomar for 2 years beginning July 1, 2018. Leomar would pay monthly rental of P100,000. He paid rent up to October 2018 and then defaulted for the rest of the year.
1.Under the cash method, how much was the deductible expense of Leomar in 2018? *
2.Using the same data in the preceding number, how much was the income of Mike in 2018 using cash method? *
3.Under the accrual method, how much was the income of Mike for 2018? *
4.Under the accrual method, how much was the deductible expense of Leomar in 2018? *
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