Question
Kale Companys year end is December 31. The company rent out unused space in its office building making the tenant sign a three month lease
Kale Companys year end is December 31. The company rent out unused space in its office building making the tenant sign a three month lease and payment is due in advance on the first day of each quarter to cover the subsequent three months. The rental charge maintenance of the rented space is $3,210 per quarter. The tenant was three months overdue on its first payment when delivered the cheque on April 1. Cleaning and maintenance of the rented space is done by a third company that charges $5,070 pre quarter. Assume monthly financials are prepared and Kale made appropriate adjusting entries each month and prepared financial statements on March 31. No interest is charged on the overdue payment.
Required 1: What is the amount of Rent Reveune recognized for the month of March in the income statement? $
Required 2: What is the amount of Rent Receivable shown on March 31 balance sheet? $
Required 3: What is the amount of cleaning and maintenance of rented space expense reported for the month of March in the income Statement? $
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