On July 1, 2021, Gee Company leased a delivery truck from Marr Company under a 3-year operating lease. Total rent for the term of the lease will be P360,000 payable as follows: 12 months at P 5,000 = P 60,000 12 months at P 7,500 = 90,000 12 months at P17,500 = 210,000 All payments were made when due.

On July 1, 2021, Gee Company leased a delivery truck from Marr Company under a 3-year operating lease. Total rent for the term of the lease will be P360,000 payable as follows: 12 months at P 5,000 = P 60,000 12 months at P 7,500 = 90,000 12 months at P17,500 = 210,000 All payments were made when due.

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

1. What is the rent revenue for the year ended June 30, 2022?

2. On June 30, 2023, what amount should be reported as accrued rent receivable?

On July 1, 2021, Gee Company leased a delivery truck from Marr Company under a 3-year
operating lease. Total rent for the term of the lease will be P360,000 payable as follows:
12 months at P 5,000 = P 60,000
12 months at P7,500 = 90,000
12 months at P17,500 = 210,000
All payments were made when due.

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