On January 1, 2022, Jessie Company signed a 5-year operating lease for office space at P3,600,000 per year. The lease included a provision for additional rent of 10% of annual company sales in excess of P6,000,000. Jessie's sales for the year ended December 31, 2022 were P10,000,000. Upon execution of the lease, Jessie paid P500,000 as a bonus for the lease. Jessie's rent expense for the year ended December 31, 2022 is O A P3,600,000 O B P4,100,000 O C P4,000,000 D P3,700,000

On January 1, 2022, Jessie Company signed a 5-year operating lease for office space at P3,600,000 per year. The lease included a provision for additional rent of 10% of annual company sales in excess of P6,000,000. Jessie's sales for the year ended December 31, 2022 were P10,000,000. Upon execution of the lease, Jessie paid P500,000 as a bonus for the lease. Jessie's rent expense for the year ended December 31, 2022 is O A P3,600,000 O B P4,100,000 O C P4,000,000 D P3,700,000

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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