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Business Z has a year-end of 31 May. The business has a contract with a garden service company to tend to the garden that surrounds
Business Z has a year-end of 31 May. The business has a contract with a garden service company to tend to the garden that surrounds the business office buildings. A monthly amount of R1260 is paid in advance on the last day of the month. Payments for garden services are recorded in the garden services expense account. On 31 May 2020, the pre-adjustment trial balance showed a line item for garden services expense R16380 (DR). For the year ended 31 May 2020, which of the following amounts will be reported in the statement of comprehensive income (SOCI) and the statement of cash flows (SOCF) in respect of garden services expense? A. SOCI: 16380 SOCF: 16380 B. SOCI: 16380 SOCF: 15120 C. SOCI: 15120 SOCF: 16380 D. SOCI: 15120 OSOCF: 15120 E. None of the above
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