Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A business made an annual rent payment of $24000. On 1 January 2018, accrued rent was $4000. The rent payments were made as follows: 1 January 2018 $12000; 1 July 2018 $10000; 1 September 2018 $13000. How was rent shown in the financial statements at 31 December 2018?

  • Aincome statement $24000; other receivables $7000; other payables nil
  • Bincome statement $24000; other receivables nil; other payables $7000
  • Cincome statement $35000; other receivables $11000; other payables nil
  • Dincome statement $35000; other receivables nil; other payables $11000

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