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Question: E. Gevera Realty Co. who owns a building in the downtown of davao city was partly rented by Metro Drug Company sometime last year. Based on their lease contract agreement, the rental will be paid every second day after the end of every month and it was being done on a consistent basis. The fiscal year will end on June 30 and payment of the rental will be made beyond this date. How will both accountants of E. Gevera Realty Company and Metro Drug Company take this up the record as an adjustment in their respective books of accounts.

Reference no: EM131569654

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