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I answered the rent expense in income statement is 5,000 and the prepaid rent in statement financial position is 20,000 and they are different with
I answered the rent expense in income statement is 5,000 and the prepaid rent in statement financial position is 20,000 and they are different with the answer Anybody can explain and show the calculation why the rent expense in income statement is 7,000, not 5,000 and the prepaid rent in statement is 18,000? Balance Day Adjustments and Preparation of Classified Reports Deakin Accounting has provided the following accounts before balance day adjustments for the month ended 30th June 2016. Account balances Accounts Payable Accounts Receivable Accumulated Depreciation: Office Equipment Bank Fees expense 30,000 40,000 30,000 10,000 Bank Loan (due 30 June 2020) Capital (1 June 2016) Cash at Bank Depreciation expense-office equipment Drawings GST Collected GST Paid Office Equipment Prepaid rent 100,000 147,000 300,000 10,000 20,000 30,000 100,000 20,000 5,000 200 Service revenue Unearned revenue Wages expense Wages payable 2,000 20,000 60 30 Additional information: i) Prepaid rent of $20,000 was paid on the 1 June 2016 for a 10 months' period. ii) Utilities owed at the end of June totaled $5,000. You are required to prepare the following: th (i) Income Statement for the month ended 30 June 2016. (ii)y Fully classified Statement of Financial Position (Balance Sheet) as at th 30 June 2016
I answered the rent expense in income statement is 5,000 and the prepaid rent in statement financial position is 20,000 and they are different with the answer
Anybody can explain and show the calculation why the rent expense in income statement is 7,000, not 5,000 and the prepaid rent in statement is 18,000?
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