[vishal.V]

Active Co pays rent quarterly in arrears on 1 Jan, 1 April, 1 July, and 1 October each year. The rent was increased from $90,000 per year to $120,000 per year as from 1 October 20×2.

What rent expense and accrual should be included in Active Co’s financial statements for the year ended 31 Jan 20×3?

Answer:
Rent expense 100,000 Accrual 10,000

Why we calculate on February to March 20×2 (22500×2/3) is 15000 why can’t we write just 22500?

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