How much is the rent expense reported in Happy Company’s profit or loss for the year ended December 31, 2021?
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Happy Company grants Incredible Company first month rent-free under a 12-month lease for low-value assets such as furniture, tablets, and laptops. The lease is effective August 1, 2021 and provides for a monthly rental of P12,000, payment of which will begin on September 1, 2021.
How much is the rent expense reported in Happy Company’s profit or loss for the year ended December 31, 2021?
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- On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)Happy Company grants Incredible Company first month rent-free under a 12-month lease for low-value assets such as furniture, tablets, and laptops. The lease is effective August 1, 2021 and provides for a monthly rental of 12,000, payment of which will begin on September 1, 2021. How much is the rent expense reported in Happy Company’s profit or loss for the year ended December 31, 2021?
- Marie Company grants Lyn Company first three months rent-free under a three-year operating lease. The lease is effective April 1, 2021 and provides for a monthly rental of P12,000, payment of which will begin on July 1, 2021. How much is the rent income reported in Marie Company’s profit or loss for the year ended December 31, 2021? 99,00072,000144,000108,000In January 1,2020, Orange Corporation leased a building to Juce Company under a four-year operating lease. The monthly rentals for 2020, 2021, 2022 and 2023 are as follows: P100,000, P150,000, P200,000 and P250,000, respectively. Rentals are payable at the end of each month. All rental payments within the year were made when due. What amount should Orange Corporation report as rent receivable on December 31, 2020?25. On January 1, 2019, Rapp company leased a new machine to Lake company. The lease expires on January 1, 2024. The annual rental is 900,000. Additionally on January 1, 2019, Lake company paid 500,000 to Rapp company as a lease bonus and 250,000 as a security deposit to be refunded upon the expiration of the lease. What amount should be reported as rent revenue for the current year?
- As an inducement to enter a lease, Legaspi Company, a lessor, grants Daraga Company, a lessee, nine months of free rent under a five year operating lease. The lease is effective on July 1, 2021, and provides for monthly rental of P500,000 to begin April 1, 2022. In Daraga's income statement for the year ended June 30, 2022, rent expense should be reported as A P5,100,000 B P4,500,000 C P3,825,000 D P1,500,000On June 1, 2018, ABC Company entered into a 5-year nonrenewable lease, commencing on that date, for office space and made the following payments to the lessor: Bonus to obtain a lease for P300,000; First months rent for P100,000 and Last month’s rent for P100,000. Compute the total rent income for 2018.On September 1, 2021, Fantastic Company leased furniture and fixtures from Gorgeous Company under a one-year contract. The lease payments are as follows: First 6 months at 12,000 per month; next 6 months at 8,000 per month. How much is the rent expense for the year ended December 31, 2021?
- On June 1, 2021 Maroon Company entered into a 5-year nonrenewable lease, commencing on that date, for office space and made the following collections from the lessee: • Bonus to obtain lease, P300,000 First month's rent, P100,000 • Last month's rent, P100,000 In its income statement for the year ended June 30, 2021, what amount should Maroon report as rent income?Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?On January 1, 2021, Maroon Company entered into a five-year nonrenewable operating lease, commencing on that date, for office space. The office space has a useful life of 50 years and the lease specifies a rent of P20,000 per month. Lessee paid P60,000 lease bonus to obtain the lease and security deposit of P40,000 to be refunded upon expiration of the lease. How much is the total rent income in 2021?