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Business A has a year-end of 31 January. The business has rented out unused office space to Business B since 1 February 2019. The rental
Business A has a year-end of 31 January. The business has rented out unused office space to Business B since 1 February 2019. The rental contract states that rent is received in advance on the last day of each month and that the monthly rental increases by 15% on 1 September each year. The rent received on 31 January 2020 amounted to R4945. Hint: February 2019 rent was paid on 1 February At 31 January 2020, rent income will be reported in the pre-adjustment and post-adjustment trial balance as follows: A. Pre-adjustment trial balance 59770 Post-adjustment trial balance 54825 B. Pre-adjustment trial balance 63790 Post-adjustment trial balance 64532 C. Pre-adjustment trial balance 55470 Post-adjustment trial balance 56115 D. Pre-adjustment trial balance 64532 Post-adjustment trial balance 63790 E. None of the above
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