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

Preparation of financial statements — practice question

A company earns rental income by leasing out two properties. For the year ended 31 December 2019, the total rental income received from these two properties was $55000. Additional details for the two properties were as follows. Rent received in advance at 1 January 2019: property 1 $1840, property 2 $0. Rent received in advance at 31 December 2019: property 1 $0, property 2 $720. Rent receivable in arrears at 1 January 2019: property 1 $0, property 2 $2120. Rent receivable in arrears at 31 December 2019: property 1 $1100, property 2 $0. What total amount of rental income would appear in the income statement for the year ended 31 December 2019?

  • A$54340
  • B$54900
  • C$55100
  • D$55660

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