uliano Real Estate owns an office building and leases the office under a variety of rental agreements
Question:
uliano Real Estate owns an office building and leases the office under a variety of rental agreements involving rent paid in advance monthly or annually.
Not all tenants make timely payments of their rent. Juliano's balance sheets contained the following data:
| 2020 | 2021 | |
|---|---|---|
| Rental Receivable | P192,000 | P248,000 |
| Unearned Rentals | 640,000 | 480,000 |
During 2021, Julaino received P1,600,000 from tenants. What amount of rental revenues should Juliano record for 2021?
Answer:
2.Under Juliano Vintage Services accounting system, all insurance premiums paid are devited to prepaid insurance. For interim financial reports Juliano makes monthly estimated charges to insurance expenses with credits ro prepaid insurance. Additional information for the year ended December 31, 2021 is as follows:
| Prepaid insurance at Dec. 31, 2020 | P110,000 |
|---|---|
| Charges to insurance expenses during 2021 (including a year- end | 437,000 |
| adjustments of P10,500) | |
| Prepaid insurace at December 31, 2021 | 120,500 |
What was the total amount of insurance premiums paid by Juliano during 2021?
Expert Answer:
SOLUTION To calculate the rental revenues for 2021 we need to consider the changes in the Rental Receivable and Unearned Rentals accounts The formula ... View the full answer
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
