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On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of P90,000. On that date Perez paid the landlord the following amounts: Rent deposit P90,000 90,000 90,000 495,000 P765,000 First month's rent Last month's rent Installation of new walls and offices The entire amount of P765,000 was charged to rent expense in 2016. What amount should Goetz have changed to expense for the vear ended December 31, 2016?

On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of P90,000. On that date Perez paid the landlord the following amounts: Rent deposit P90,000 90,000 90,000 495,000 P765,000 First month's rent Last month's rent Installation of new walls and offices The entire amount of P765,000 was charged to rent expense in 2016. What amount should Goetz have changed to expense for the vear ended December 31, 2016?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 5RE: Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August...
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The entire amount of P765,000 was charged to rent expenses in 2016. What amount should Goetz have charged to expense for the year ended December 31, 2016?

On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of P90,000. On that date Perez paid the landlord the following amounts: Rent deposit P90,000 90,000 First month's rent Last month's rent 90,000 Installation of new walls and offices 495,000 P765,000 The entire amount of P765,000 was charged to rent expense in 2016. What amount should Goetz have changed to expense for the year ended December 31, 2016?
Transcribed Image Text:On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of P90,000. On that date Perez paid the landlord the following amounts: Rent deposit P90,000 90,000 First month's rent Last month's rent 90,000 Installation of new walls and offices 495,000 P765,000 The entire amount of P765,000 was charged to rent expense in 2016. What amount should Goetz have changed to expense for the year ended December 31, 2016?
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