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A company receives rent from a large number of properties. The total received in the year ended 30 April 20X6 was
$481,200.
The following were the amounts of rent in advance and in arrears at 30 April 20X5 and 20X6:
30 April 20X5 30 April 20X6
$
$
Rent received in advance
28,700
31,200Rent in arrears (all subsequently received)
21,200
18,400What amount of rental income should appear in the company’s statement of profit or loss for the year ended 30 April 20X6?
A $486,500
B $460,900
C $501,500
D $475,900Please explain.
The answer is D.
Notice that the amount of 28,700 was received in advance so that it should be included in SOCI in 31 Oct 2010. Same, the amount of 18,400 should be included in SOCI too.
Then, less the amount of 31,200 (because it was received in advance, so 31,200 was for the next year not for 2010). Same, less 21,200 (this amount was for 2008).
481,200 + 28,700 + 18,400 – 31,200 – 21,200=DThe year end of M Co is 30 Nov. 20X0. The company pays for its gas by a standing order of $600 per month. On 1 Dec. 20W9, the statement from the gas supplier showed that M Co had overpaid by 200$. M Co received gas bills for the four quarterSeasons commencing on 1 Dec. 20w9 and ending on 30 Nov. 20×0 for 1300, 1400, 2100, 2000 respectively.
Which of the following is the correct charges for gas in M Inc’s statement of profit or loss for the year ended 30 Nov. 20×0?
Is the answer equal $6800. Can you please explain this??
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