Reference no: EM132746900
Questions -
Q1. Under accrual basis, Ethel Company reported rental income for the year 2020 at P1,200,000.
The company provided the following additional information regarding rental income:
Unearned rental income, January 1 P100,000
Unearned rental income-December 31 150,000
Accrued rental income, January 1 60,000
Accrued rental income, December 31 80,000
What total amount of cash was received from rental in the year 2020?
a. 1,170,000
b. 1,230,000
d. 1,310,000
c. 1,250,000
Q2. On July 1, 2019, Peter Senen obtained fire insurance at an annual premium of P144,000 payable on July 1 of each year. The first premium payment was made July 1, 2010.
On October 1, 2019, the entity paid P48,000 for real estate taxes to cover the period ending September 30, 2020.
On December 31, 2019, what amount should be reported as prepaid expenses?
a. 120,000
b. 72,000
c. 108,000
d. 96,000
Q3. JYD Company reported that the unadjusted prepaid expense on December 31, 2019 comprised the following:
An opening balance of P300,000 for an insurance policy. The company had paid an annual premium of P600,000 on july 1, 2018.
A P640,000 annual insurance premium payment on July 1, 2019.
A P200,000 advance rental payment for a warehouse leased for one year beginning January 1, 2020.
On December 31, 2019, what amount should be reported as prepaid expenses?
a. 1,040,000
b. 720,000
c. 400,000
d. 320,000
Q4. During the year 2020, Peter Senen received P16,000,000 from tenants. The statement of financial position contained the following data.
Rent receivable- January 1 P1,920,000
Rent receivable- December 31 2,480,000
Unearned rent revenue- January 1 6,400,000
Unearned rent revenue-December 31 4,800,000
Uncollectible rent written off during the year 1,000,000
What amount of rent revenue should be reported for the current year?
a. 18,160,000
b. 19,160,000
d. 15,960,000
c. 17,160,000