A cosmetics company rents advertising space in a train station at 5,000 per month. On 31 December

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A cosmetics company rents advertising space in a train station at £5,000 per month.

On 31 December 2012 the business had prepaid 7 months of the 2013 rental. During the year ended 31 December 2013 the business paid a further 10 months’ rent, part of which was prepaid for 2014.

(a) Explain what is meant by a prepayment.

(b) What is the total of the advertising expense to be shown in the income statement for the year ended 31 December 2013?

(c) What information relating to advertising would be shown in the statement of financial position as at 31 December 2013?

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Accounting And Finance For Business

ISBN: 9780273773948

1st Edition

Authors: Geoff Black, Mahmoud Al-Kilani

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Question Posted: Jul 01, 2024 11:11 AM

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A cosmetics company rents advertising space in a train station at 5,000 per month. On 31 December

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Accounting And Finance For Business

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