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  1. avatar says

    The Question is:

    Morias prepares its financial statements for the year end to 30 April each year.
    The company pays rent quarterly in advance on 1 Jan, 1 April, 1 July, and 1 October each year. The annual rent was 201, 600 per year until June 30 2008. it was increased to 230, 400 per year from that date.

    What is the rent expense and prepayment to be included in the statement of financial position for 30 April, 2009?

    Expense Prepayment
    A 223,200 19,200
    B 223,200 38,400
    C 225,600 9,200
    D 225,600 38,400
    ans is d but i didn’t understand how prepayment would be 38400 ???

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