Rent Expense – NBC Institute

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

Question

Oluyemi Ventures prepares its financial statements to March 31 each year. The business pays rent quarterly in advance on January 1, April 1, July 1, and October 1 each year. The annual rent is N600,000. On June 30, 2013, the rent was increased to N900,000 per annum.

Required:
i. Calculate the amount of rent that will be recognized in the Statement of Profit or Loss for the year ended March 31, 2014. (3 Marks)
ii. Calculate the amount to be recognized in the Statement of Financial Position as at March 31, 2014. (1 Mark)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Rent Expense, Statement of Profit or Loss
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

Question

The information below relates to the accounting period ended December 31, 2013.
N
Prepaid rent brought forward: 22,000
Rent paid during the period: 216,000
Accrued rent carried forward: 26,000

In line with the accrual concept, what should be the amount of rent to be charged to the statement of profit or loss in the year ended December 31, 2013?
A. N264,000
B. N242,000
C. N238,000
D. N216,000
E. N48,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accruals, Rent Expense
Level: Level 1

Topic: Accruals and Prepayments
Series: NOV 2015

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrual Accounting, Rent Expense, Statement of Profit or Loss
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

Question

The information below relates to the accounting period ended December 31, 2013.
N
Prepaid rent brought forward: 22,000
Rent paid during the period: 216,000
Accrued rent carried forward: 26,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accruals, Rent Expense
Level: Level 1

Topic: Accruals and Prepayments
Series: NOV 2015

Question Tag: Rent Expense

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Rent Expense

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments"

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments"

Our offerings

Contact Info

Customer

Get In Touch

admin