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A business sublets part of its office . The rent is received quarterly in advance on 1st jan, 1st April, 1st july and 1st oct. The annual rent has been $24000 for some years, but it was increased to $30000 from 1st july 2008.. Required: What amount for the rent should appear in financial position(balance sheet)?
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Hi, Mr.John.
My question from Dec.2011 Exams.ch.4. Accr.and Prepaym. Qs.1.
I don’t understand why you didn’t add to current.assets the amount 7200 $ of the insuarance prepaid?cc1)on 1 jan.2008 the company made a loan of 28 800 to an employee, repayable 1 jan.2009 charging interest 2 % per year. On the due date she paid whole am.of loan and interest.
2) company paid insuarance 21 600 $ in 2008 covering the year ending 31 Avg. 2009.
3) On 1 Jan 2009 the company received rent from a tenant 9600$ covering six months
to 31 Dec.2008
For these items what total figures should be incleded in the Statement of Financial Position at 31 Dec 2008 ?
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