for the last two years of the lease.expiration of the lease but will be applied to payment of rentProblem 12-17 (AICPA Adapted)Company for a ten-year term at an annual rental of P500,000.On January 1, 2020, Glen Company leased a building to Dixcovering the first two years' rent of P1,000,000 and a securityThis deposit will not be returned to Dix Company uponAt inception of the lease, Glen Company received P2,000,000for a ten-year term at an annual rental of P500,000.Companyu inception of the lease, Glen Company received P2,000,000adeposit of P1,000,000.This deposit will not be returned to Dix Company uponfor the last two years of the lease.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.C.d.

Solution Concept Current liability Current liability means the liability which are…

PÅ Adapted) Problen At inception of the lease, Glen Company received P2,000,000 This deposit will not be returned to Dix Company upon covering the first two years' rent of P1,000,000 and a security On January 1, 2020, Glen Company leased a building to Dix for the last two years of the lease. expiration of the lease but will be applied to payment of rent Company for a ten-year term at an annual rental of P500,000. v inception of the lease, Glen Company received P2,000,000 At ing the first two years' rent of P1,000,000 and a security deposit of P1,000,000. What amount should be reported as current and noncurrent liability in the December 31, 2020 statement of financial position? Current liability Noncurrent liability 2,000,000 1,000,000 1,000,000 a. 500,000 1,000,000 1.000 000 b. C. 500 000

PÅ Adapted) Problen At inception of the lease, Glen Company received P2,000,000 This deposit will not be returned to Dix Company upon covering the first two years' rent of P1,000,000 and a security On January 1, 2020, Glen Company leased a building to Dix for the last two years of the lease. expiration of the lease but will be applied to payment of rent Company for a ten-year term at an annual rental of P500,000. v inception of the lease, Glen Company received P2,000,000 At ing the first two years' rent of P1,000,000 and a security deposit of P1,000,000. What amount should be reported as current and noncurrent liability in the December 31, 2020 statement of financial position? Current liability Noncurrent liability 2,000,000 1,000,000 1,000,000 a. 500,000 1,000,000 1.000 000 b. C. 500 000

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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Under leases
WHAT IS THE INCREASE IN LEASE LIABILITY?
7
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