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Operating Lease - Lessee: Problem 1
Operating Lease - Lessee: Problem 1
Answer : 665,000
Problem 2
Problem 4
On July 1, 2020, Melvin Company leased
office space for 5 years at P150,000 a Lester Company leases and operates a
month, On that date the entity paid the retail store. The following information
lessor the following relates to the lease for the current year:
I. The store lease, an operating
Rent security deposit lease, calls for the lease
II. Additional rent is computed at
350,000 6% of net sales over P3,000,000 up to
First month’s rent P6,000,000 and 5% of net sales
over P6,000,000, per calendar year.
150,000 III. Net sales for the current year
Last month’s rent amount to P9,000,000.
IV. The entity paid executory costs
150,000 to the lessor for property taxes of
Nonrefundable reimbursement to lessor P120,000 and insurance of
for modification to the leased premises P50,000
900,000
What total amount of the expense should
What portion of payments to the lessor be reported for the year?
should be deferred on December 31,
2020? Answer: 680,000
In the income statement for the year Additionally on July 1, 2016, the entity
ended June 30, 2021 what amount should paid P240,000 as a lease bonus to obtain
be reported as rent expense. a three year lease instead of the lessor’s
unusual term of six years
Answer: 1,020,000
On December 31, 2016, what amount
Problem 6 should be reported a prepaid rent?
Problem 7
Answer: 877,500
Problem 8