Under the accrual basis, rental income of EM Corporation for the calendar year 2019 is ₱600,000. Additional information regarding rental income are presented as follows: Unearned rental income, January 1, 2019 –₱50,000; Unearned rental income, December 31, 2019 –₱75,000; Accrued rental income,
Under the accrual basis, rental income of EM Corporation for the calendar year 2019 is ₱600,000. Additional information regarding rental income are presented as follows: Unearned rental income, January 1, 2019 –₱50,000; Unearned rental income, December 31, 2019 –₱75,000; Accrued rental income,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Under the accrual basis, rental income of EM Corporation for the calendar year 2019 is ₱600,000. Additional information regarding rental income are presented as follows: Unearned rental income, January 1, 2019 –₱50,000; Unearned rental income, December 31, 2019 –₱75,000; Accrued rental income, January 1, 2019 –₱30,000; Accrued rental income, December 31, 2019 –₱40,000. Under the cash basis, how much rental income should be reported?
₱ 625,000
₱ 655,000
₱ 585,000
₱ 615,000
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