July 1, 2018, Gee Company leased a delivery truck from Marr Compar 3-year operating lease. Total rent for the term of the lease will be P360,000 payable as follows: 12 months at P5,000= P60,000 12 months at P7,500= 90,000 12 months at P17,500= 210,000
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- On April 1, 2019, Golden State Company leased a delivery truck from Warriors Company under a five-year operating lease. Total rent for the term of the lease will be payable as follows: First 9 months at P200,000/mo. Next 18 months at 100,000/mo. Next 12 months at 80,000/mo. Last 14 months at 50,000/mo. Last 7 months at 70,000/mo. How much should Golden State Company report as rent expense for the year ended December 31, 2019?On September 1, 2021, Fantastic Company leased furniture and fixtures from Gorgeous Company under a one-year contract. The lease payments are as follows: First 6 months at 12,000 per month; next 6 months at 8,000 per month. How much is the rent expense for the year ended December 31, 2021?On May 1, 2021, ABC Company leased furniture and fixtures from XYZ Company under a one-year contract. The lease payments are as follows: First 2 months at P12,000 per month Next 4 months at P18,000 per month Next 3 months at P15,000 per month Last 3 months at P10,000 per month After the first year, the rent continues at P8,000 per month. What are the amounts reported in ABC financial statements for the year 2021?
- On August 1, 2020, Sputnik Company leased furniture and fixtures from Home Company under a one-year contract. The lease payments are as follows: First 6 months at P12,000 per month; next 6 months at P8,000 per month. How much is the rent expense for the year ended December 31, 2020?On June 1, 2018 ABC Company entered into a 5-year nonrenewable lease, commencing on that date, for office space and made the following payments to the lessor: Bonus to obtain lease for P300,000 First month’s rent for P100,000 Last month’s rent for P100,000. Compute the total rent income for 2018.On July 01, 2011, a company leased a piece of land under a 3-year lease. Total rent for the term of the lease will be P3,600,000 payable as follows. All payments were made when due. How much is the lessor's rent revenue for the fiscal year ended June 30, 2012 suppose it classifies the lease as an operating lease? Use the same information An amount reported in the lessor's statement of financial position at June 30, 2013 would include a. P900,000 Unearned Rent b. P900,000 Rent Receivable c. P1,500,000 Unearned Rent d. P1,500,000 Rent Receivable
- On November 1,2020, ABC Company leased a piece of furniture to XYZ Corporation under a 9-month operating lease. Total rent for the term of the lease will be P36,000, payable as follows:· P5,000 per month for the first 3 months- P15,000· P4,500 per month for the next 3 months- P13,500· P2,500 per month for at least 3 months- P7,500Payments were made in advance on a monthly basis. XYZ uses the calendar year. The monthly entries in the books of ABC Company on February 1, March 1 and April 1, 2021 is?On July 01, 2011, a company leased a piece of land under a 3-year lease. Total rent for the term of the lease will be P3,600,000 payable as follows. All payments were made when due. How much is the lessor's rent revenue for the fiscal year ended June 30, 2012 suppose it classifies the lease as an operating lease? a. P600,000 b. P900,000 c. P1,200,000 d. P2,100,000Ken Company leased an asset on January 1, 2020. The asset was accounted for as an operating lease for five years. The rent for the first year is P100,000 and the contract stipulates that the rent shall increase by 10% for every year thereafter. The lease agreement also provides that a lease bonus shall be paid to Ken at the start of the lease. Ken reported an Unearned Rent Revenue of P10,796 and Rent Receivable of P5,306 on its Balance Sheet for 2021 and 2022, respectively. How much is the lease bonus? How much is the rental expense to be recorded in 2022? How much should be reported in the 2022 Balance Sheet? [Indicate whether it is an asset or liability]
- On January 1, 2021, Flackmon Company entered into a lease for a truck with a payment of S16,000 per year for 4 years. The expected life of the truck is 5 years, and the first payment will be made immediately. Flackmon could obtain a loan for a similar amount at a rate of 8% per year. Required: A. Record the lease liability and the first payment on January 1, 2021. B. Record the amortization on the leased asset for 2021. C. Record interest for 2021 on the lease. D. Record the lease payment on January 1, 2022. Your answers to this open-ended assignment should be placed in the space below this line. A Date Account Name Debit Credit Jan. 1, 2021 1-Jan-21 B Date Account Name Debit Credit Dec. 31, 2021 C Date Account Name Debit Credit Dec. 31, 2021 D Date Account Name Debit Credit Jan. 1, 2022On January 1, 2018, ABC Company entered into a five-year nonrenewable operating lease, commencing on that date, for office space. The office space has a useful life of 50 years and the lease specifies that in the first two years, rent will be P20,000 per month but in the last three years, it will be P25,000 per month. How much is the total rent receivable at the end of2019?On January 1, 2019 Zhavy Co. leased office furniture from Cherry Co. under operating lease. Payments on the will be made as follows: December 31, 2019 230,000 December 31, 2020 250,000 December 31, 2021 270,000 As an inducement to enter the lease, CHERRY CO. granted ZHAVY CO. the first six months of the lease rent-free. SINAG also paid the following: Initial direct cost 100,000 Security deposit 50,000 Lease Bonus 60,000 Insurance and Maintenance cost 25,000 What amount of rental income should be reported in the income statement of CHERRY CO. for the year ended December 31, 2019?