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A company lets out a number of properties. The total rent received in the yearended 30 June 2009 was $617,000. The following amounts were received in advanceor were in arrears at the dates shown:
30 Jun 2009 1Jul 2008
$ $Rent received in advance 25,250 37,900 Rent in arrears (all subsequently received ) 12,250 31,000 What amount of rental income should appear in the income statement for the yearended 30 June 2009?
A $597,100
B $610,900
C $623,100
D $636,900Answer is B.
Rent income to be shown in IS:
Total rent received during the year 617,000
(-) Rent received in advance during the year (25,250)
+ Rent in arrears for the year 12,250
+ Rent received in advance during the previous year 37,900
(-) Rent in arrears for the previous year (31,000)Thus, Rent Income for the year ended 30 June 2009 is $610,900.
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