Recognition and Measurement of Revenue (NZ IAS 11)

1.) Renter Company rents out some premises to Tenant Limited. Tenant Limited pays its rent 3 months in advance and made the first payment on 1 February 2016. The rent is $2,000 per month. Renter Companys end of the period is 31 March 2016.

Required: Provide the Journal entries that Renter Company will make to record the receipt of cash, and recognise the rental income for March 2016.