Quiz Far
Quiz Far
Quiz Far
The following
information relates to the lease for the current year: • The store lease, an
operating lease, calls for a base monthly rent of P15,000 on the first day of
each month. • Additional rent is computed at 6% of net sales over
P3,000,00 up to P6,000,000 and 5% of net sales over P6,000,000, per
calendar year. • Net sales for the current year amounted to P9,000,000. •
The entity paid executory costs to the lessor for property taxes of P120.000
and insurance of P50,000. What total amount of the expenses should be
reported in income statement for the year?. Single line text.
(2 Points)
3.On December 1, 2019, Tell Company leased office space for five years at
a monthly rental of P600,000, On the same date, the entity paid the lessor
the following amounts: Bonus to obtain lease 300,000 First month's rent
600,000 Last month's rent 600,000 Security deposit refundable at lease
expiration 800,000 Installation of new walls and offices 3,600,000 What
total amount lease expenses relating to utilization of office space should
be reported for 2019?. Single line text.
(2 Points)
5.On January 1, 2019, Glen Company leased a building to Dix Company for
a ten-year term at an initial rental of P500,000. At inception of the lease,
Glen received P2,000,000 covering the first two years' rent of P1,000.000
and a security deposit of P1,000,000. This deposit will not be returned to
Dix upon expiration of the lease but will be applied to payment of rent for
the last two years of the lease. What portion of the P2,000,000 should be
reported as current liability?. Single line text.
(2 Points)
6.Oak Company leased equipment for the entire nine-year useful life,
agreeing to pay P500,000 at the start of the lease term on December 31,
2019, and P500,000 annually on each December 31 for the next eight years.
The present value on December 31, 2019 of the nine lease payments over
the lease term using the rate implicit in the lease which Oak know; to
be.10% was P3,165,000. The December 31, 2019 present value of the lease
payments using Oak's incremental borrowing rate of 12% was P2,985,000.
Oak made a timely second lease payment. What amount should be
reported as lease liability on December 31, 2020. Single line text.
(2 Points)
12.On July 1, 2019. Walton Company leased office premises for a three-
year period at an annual rental of P360,000 payable on July each year. The
first rent payment was made July 1, 2019. Additionally on July 1, 2019. the
entity paid P240,000 as a lease bonus to obtain a three-year lease instead
of the lessor's usual term of six years. On December 31, 2020, what amount
should be reported as rent payable?. Single line text.
(2 Points)