VCAA 2011 EXAM 2 PLEASE HELP

[Nima2703]

in vcaa 2011 how come the rent expense for income statement is $26400?? question 2.1.4 i know its 2000x6+2400x6 but the budget 2012 june 30 has 2400 prepaid balance so wouldnt the last one be omitted or something? thanks and sorry

[Nima2703]

pleeease someone have the courtesy :p

[aryaayubi]

Nima joon whats wrong

[Nima2703]

OMG LOL

[aryaayubi]

Nima. I just looked at the question, its easy. that $2400 is just the monthly increase $2000 x 40%


Ready for tomorrow

[aryaayubi]

Koja rafte?

[aryaayubi]

"pleeease [Nima] have the courtesy :p"

[aryaayubi]

LOL asabani shodi

Im off to bed. Good luck for tomorrow

[thetimeis]

The $2400 at the end just means the firm has paid $2400 for the next month in advance (which you dont have to worry about because thats out of the reporting period.)
The actual rent expense is 2000*6 + 2400*6

[Elucidor]

The $2400 at the end just means the firm has paid $2400 for the next month in advance (which you dont have to worry about because thats out of the reporting period.)
The actual rent expense is 2000*6 + 2400*6

Ha I got this question wrong when doing it as a prac exam.
It's actually 2000*5 + 2400*7 because the rent increased FOR January so it was paid in December.

[angryusb]

2 words. Account Reconstruction!