On July 1, 2021, Walton Company leased office premises for a 3 year period at an annual rental of P360,000 payable on July 1 of each year. The first rent payment was made July 1, 2021. Additionally, on July 1, 2021, Walton Company paid P240,000 as a lease bonus to obtain a 3 year lease instead of the lessor’s usual term of 6 years. 1. In the December 31, 2021 statement of financial position, what should be reported as prepaid rent?
On July 1, 2021, Walton Company leased office premises for a 3 year period at an annual rental of P360,000 payable on July 1 of each year. The first rent payment was made July 1, 2021. Additionally, on July 1, 2021, Walton Company paid P240,000 as a lease bonus to obtain a 3 year lease instead of the lessor’s usual term of 6 years. 1. In the December 31, 2021 statement of financial position, what should be reported as prepaid rent?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2021, Walton Company leased office premises for a 3 year period at an annual rental of P360,000 payable on July 1 of each year. The first rent payment was made July 1, 2021. Additionally, on July 1, 2021, Walton Company paid P240,000 as a lease bonus to obtain a 3 year lease instead of the lessor’s usual term of 6 years.
1. In the December 31, 2021
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