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Problem - A lessor leased out an office space for 5 years on January 1, 2020. The lease was properly accounted for as an operating lease. The rental payment are as follows:
1st year to 2nd year P30,000 per month
3rd year to 5th year P36,000 per month
The lease contract provides for a 6-month advance and 1-month security deposit. The lessee also paid a P60,000 lease bonus to obtain the lease. The security deposit will be returned at the end of the lease. The advances may be applied against the last six months of the lease.
How much is the rent receivable / (unearned rent) as of December 31, 2021?
How much is the rent income for 2021?
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