BTS owns an office building and leases the office spaces under a one-year rental agreement.   Not all tenants make timely payments of their rent.   During 2021, BTS received P800,000 from tenants.   The company’s statement of financial position on December 31, 2020 reported Rent Receivable of P96,000 and Unearned Rent Revenue of P320,000.  The statement of financial position on December 31, 2021 and income statement for the year ended December 31, 2021 reported Rent Receivable and Rent Revenue of P124,000 and P908,000, respectively. How much was BTS unearned rent revenue on December 31, 2021?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
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Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...
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BTS owns an office building and leases the office spaces under a one-year rental agreement.   Not all tenants make timely payments of their rent.   During 2021, BTS received P800,000 from tenants.   The company’s statement of financial position on December 31, 2020 reported Rent Receivable of P96,000 and Unearned Rent Revenue of P320,000.  The statement of financial position on December 31, 2021 and income statement for the year ended December 31, 2021 reported Rent Receivable and Rent Revenue of P124,000 and P908,000, respectively. How much was BTS unearned rent revenue on December 31, 2021?

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