Question
Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises quarterly in advance on 1
Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises
quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was $84,000 per year
until 30 June 20X5. It was increased from that date to $96,000 per year.
What rent expense and end of year prepayment should be included in the financial statements for the year ended
30 April 20X6?
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Principles of Financial Accounting chapters 1-17
Authors: John Wild, Ken Shaw, Barbara Chiappetta
23rd edition
1259687740, 1259687747, 978-1259687747
