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70. On July 1, 20x6, Entity A leased a delivery truck from Entity under a 3-year operating lease. Total rent for the term of t lease will be P36,000, payable as follows: 12 months at P 500 = P 6,000 %3D

70. On July 1, 20x6, Entity A leased a delivery truck from Entity under a 3-year operating lease. Total rent for the term of t lease will be P36,000, payable as follows: 12 months at P 500 = P 6,000 %3D

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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In its statement of financial performance for the year ended June 30, 20x0, what amount should Entity A report as rent expense? a. 10,000 (AICPA) b. 10,500 c. 40,000 d. 50,000 333 Leases 10. On July 1, 20x6, Entity A leased a delivery truck from Entity B under a 3-year operating lease. Total rent for the term of the lease will be P36,000, payable as follows: 12 months at P 500 = P 6,000 12 months at P 750 = 9,000 %3D 12 months at P1,750 = 21,000 All payments were made when due. In Entity B's June 30, 20x8, balance sheet, the accrued rent receivable should be reported as с. 12,000 d. 21,000 a. 0 b. 9,000 (AICPA)
Transcribed Image Text:In its statement of financial performance for the year ended June 30, 20x0, what amount should Entity A report as rent expense? a. 10,000 (AICPA) b. 10,500 c. 40,000 d. 50,000 333 Leases 10. On July 1, 20x6, Entity A leased a delivery truck from Entity B under a 3-year operating lease. Total rent for the term of the lease will be P36,000, payable as follows: 12 months at P 500 = P 6,000 12 months at P 750 = 9,000 %3D 12 months at P1,750 = 21,000 All payments were made when due. In Entity B's June 30, 20x8, balance sheet, the accrued rent receivable should be reported as с. 12,000 d. 21,000 a. 0 b. 9,000 (AICPA)
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