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A business pays rent quarterly in arrears on 31 march, 30 june, 30 September and 31 December each year . The rent payables was $24000 per year up to 31 july 2013 and increased to $27000 per year from 1 august. What is the rent expense for the year ended 31 January 2014?
Can I see a calculation please?
From 1 Feb 2013 to 31 Jul 2013 (6 months) the rent is 6/12 x 24,000 = 12,000
From 1 Aug 2013 to 31 Jan 2014 (6 months) the rent is 6/12 x 27,000 = 13,500
Total expense = 25,500
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