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. The total rental income received from these two properties for the year ended 31 December 2019 was $55\,000. Additional details for the two properties were given, including rent received in advance and rent receivable in arrears at 1 January 2019 and 31 December 2019 for property 1 and property 2. What total rental income should appear in the income statement for the year ended 31 December 2019?

  • A$54\,340$
  • B$54\,900$
  • C$55\,100$
  • D$55\,660$

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