Difference between rent paid by new tenant and rent

Assignment Help Financial Accounting

Reference no: EM131222947

Gamison Ltd has leased a warehouse in an industrial section of the twon. The lease is for 5 years and can only be cancelled by Gamison if Gamisons reimburses the landlord for the costs of re-letting the warehouse including any costs of finding a new tenant, any lost rent and any difference between the rent paid by the new tenant and the rent which would have been paid by Gamison if the new tenant pays a lower rent than Gamison did. The landlord maintains responsibility for rates and other taxes, maintenance of the building and carries the risk if the building is damaged. Gamison is responsible for all utilities. The lease commenced on 1st January 2013 and requires quarterly rental payments of $15,000 to be paid on the 1st of January, April, July and October each year with the first payment on 1 st January 2013. Gamison fitted out the warehouse for its needs at the start of the lease and paid $10,000 for the fitout on 1st January 2013. Gamison is required under the lease to pay to remove all its fittings from the warehouse at the end of the lease. Gamison expects that will cost $5,000.The incrimental borrowing rate is 10%.Prepare the balance sheet portion for the data requred what goes under asset and liabilities and what goes as an expense in the income statment if the financial year ends at 30 june 2014

Reference no: EM131222947

Questions Cloud

Explain the style and meaning of abstract expressionism art : In your own words, describe how you would define the movement and explain the style and meaning of Abstract Expressionism art. Your essay should be no less than two paragraphs.

Determine the amount of overall materiality for the audit : Suppose that you are the auditor of a major retail client who has reported the following income before taxes (IBT) for the first two quarters of the year: 1st quarter = $1,200,000 and 2nd quarter = $1,500,000. You are in the process of establishing o..

Is factory work unpleasant to your mind : The philosopher Karl Jaspers has claimed that modern technology brings an "immense joylessness." Do you agree? Is factory work unpleasant, to your mind? Office work in a very large organization such as an insurance company? Do you think the nature..

Internet and use of communication impacted the outcome : Quick and easy! Please answer the below questions in 400 or more words. Needs to be orginial content please. 1. How has the Internet and use of communication impacted the outcome of war(s)?

Difference between rent paid by new tenant and rent : Gamison Ltd has leased a warehouse in an industrial section of the twon. The lease is for 5 years and can only be cancelled by Gamison if Gamisons reimburses the landlord for the costs of re-letting the warehouse including any costs of finding a new ..

Write the given autobiography in more better way : Write the given autobiography in more better way.- Design has the power of always being different in every project.

How many work for companies that provide goods and services : Among the families you know, how many work for companies that provide goods or services for capital formation-that is, for investment purposes rather than for consumption?

Application-cybercrime-related laws and digital evidence : Imagine you are watching a movie that has a dramatic court scene where the prosecutor picks up a menacing weapon used in the commission of the crime. As he or she thrusts it up high for all to see, a collective gasp echoes through the courtroom. T..

What is the origin of callenders account about the jefferson : What is the origin of Callender's account about the Jefferson-Hemings affair, i.e. where and from whom did Callender get his scandalous information?

User Account

All Pages