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AUSTRIA Company leased a furniture and fixture under a one-year contract. The lessor grants AUSTRIA two months of free rental. The lease is effective August

AUSTRIA Company leased a furniture and fixture under a one-year contract. The lessor grants AUSTRIA two months of free rental. The lease is effective August 1, 2022, and provides for a monthly rental of P12,000. The first payment will begin on October 1, 2021.



How much is the Prepaid Rent/Rent Payable at December 31, 2022?



How much is the Rent Expense to be recognized by AUSTRIA in 2023?

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