Solution-What amount of rental revenue should TINY record

What amount of rental revenue should TINY record

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Q1. TINY Company owns an office building and leases the offices under a variety of rental agreements involving rent paid in advance monthly or annually. Not all tenants make timely payments of their rent. TINY's statement of financial position contained the following data:

2018 2019

Rental receivable 960,000 1,240,000

Unearned rentals 3,200,000 2,400,000

During 2019, TINY received P8,000,000 cash from tenants. What amount of rental revenue should TINY record for 2019?

Q2. BENNY Company maintains the accounting records using the cash basis of accounting but uses accrual basis in preparing its financial statements. During 2019, the entity collected P5,000,000 in fees from clients. At December 31, 2018, accounts receivable of P800,000 and unearned fees of P500,000 had been recorded.

At December 31, 2019, accounts receivable increased to P1,500,000 while unearned fees increased to P900,000. In the accrual basis income statement, what was the service revenue for 2019?

Reference no: EM133051002

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What amount of rental revenue should TINY record

Reference no: EM133051002

Reference no: EM133051002

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