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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 P84,000 per year until 30 June 2000. It was increased from that date to P96,000 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: 94,000 ; Prepayment: 8,000 Expense: 93,000 ; Prepayment: 8,000 Expense: 93,000 ; Prepayment: 16,000 Expense: 94,000 ; Prepayment: 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 P84,000 per year until 30 June 2000. It was increased from that date to P96,000 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: 94,000 ; Prepayment: 8,000 Expense: 93,000 ; Prepayment: 8,000 Expense: 93,000 ; Prepayment: 16,000 Expense: 94,000 ; Prepayment: 16,000

FINANCIAL ACCOUNTING
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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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 P84,000 per year until 30 June 2000. It was increased from that date to P96,000 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: 94,000 ; Prepayment: 8,000
Expense: 93,000 ; Prepayment: 8,000
Expense: 93,000 ; Prepayment: 16,000
Expense: 94,000 ; Prepayment: 16,000
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