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Moira prepares its financial statements for the year to 30 April each year. The company pays rent for its premises quarterly in advance on January 1, April 1, July 1 and October 1 each year. The annual rent was $201600 per year until 30 June 2008. It was increased from that date to $230400 per year.
What rent expense and end of year prepayment should be included in the financial statements for the year ended 30 April 2009?
Can i see the calculation please?
201600×2:12=33600 and 230400×10:12=192000 33600+192000=225600 will transferred to Income ans expense account.(Rent expense)
and 38400 will be transferred to Balance sheet as a prepayment. good luck.
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