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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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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