Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was $84,000 per year until 30 June 2000. It was increased from that date to $96,000 per year. What rent expense and end of year prepayment should be included in the financial statements for the year ended 30 April 2001? Expense Prepayment A $93,000 $8,000 B $93,000 $16,000 C $94,000 $8,000 D $94,000 $16,000
Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was $84,000 per year until 30 June 2000. It was increased from that date to $96,000 per year. What rent expense and end of year prepayment should be included in the financial statements for the year ended 30 April 2001? Expense Prepayment A $93,000 $8,000 B $93,000 $16,000 C $94,000 $8,000 D $94,000 $16,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises
quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was $84,000 per year until
30 June 2000. It was increased from that date to $96,000 per year.
What rent expense and end of year prepayment should be included in the financial statements for the year ended 30
April 2001?
Expense Prepayment
A $93,000 $8,000
B $93,000 $16,000
C $94,000 $8,000
D $94,000 $16,000
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