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On January 1, 2019 Zhavy Co. leased office furniture from Cherry Co. under operating lease. Payments on the will be made as follows: December 31, 2019 230,000 December 31, 2020 250,000 December 31, 2021 270,000   As an inducement to enter the lease, CHERRY CO. granted ZHAVY CO. the first six months of the lease rent-free. SINAG also paid the following: Initial direct cost 100,000 Security deposit 50,000 Lease Bonus 60,000 Insurance and Maintenance cost 25,000   What amount of rental income should be reported in the income statement of CHERRY CO. for the year ended December 31, 2019?

On January 1, 2019 Zhavy Co. leased office furniture from Cherry Co. under operating lease. Payments on the will be made as follows: December 31, 2019 230,000 December 31, 2020 250,000 December 31, 2021 270,000   As an inducement to enter the lease, CHERRY CO. granted ZHAVY CO. the first six months of the lease rent-free. SINAG also paid the following: Initial direct cost 100,000 Security deposit 50,000 Lease Bonus 60,000 Insurance and Maintenance cost 25,000   What amount of rental income should be reported in the income statement of CHERRY CO. for the year ended December 31, 2019?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019 Zhavy Co. leased office furniture from Cherry Co. under operating lease. Payments on the will be made as follows:

December 31, 2019

230,000

December 31, 2020

250,000

December 31, 2021

270,000

 

As an inducement to enter the lease, CHERRY CO. granted ZHAVY CO. the first six months of the lease rent-free. SINAG also paid the following:

Initial direct cost

100,000

Security deposit

50,000

Lease Bonus

60,000

Insurance and Maintenance cost

25,000

 

What amount of rental income should be reported in the income statement of CHERRY CO. for the year ended December 31, 2019?

done - Word (Product Activation Failed) FILE HOME INSERT DESIGN PAGE LAYOUT REFERENCES MAILINGS REVIEW VIEW Microsoft account - X Cut A Find - Calibri (Body) 11 - A A Aa - AaBbCcDc AaBbccDc AaBbC AaBbCcC AaB| AaBbCcc AaBbCcD AaBbCcDt Ee Copy ac Replace Paste BIU - abe X, x A - aly - A I Normal I No Spac. Heading 1 Heading 2 Subtitle Subtle Em. Emphasis Title Format Painter A Select - Clipboard Font Paragraph Styles Editing ABC L 1 1.. . 3 4 .. .I. ...A . . . 7 . . On January 1, 2019 ZHAVY Co. leased office furniture from CHERRY CO. under operating lease. Payments on the will be made as follows: December 31, 2019 230,000 December 31, 2020 December 31, 2021 250,000 270,000 As an inducement to enter the lease, CHERRY CO. granted ZHAVY CO. the first six months of the lease rent-free. SINAG also paid the following: Initial direct cost 100,000 Security deposit 50,000 Lease Bonus 60,000 Insurance and Maintenance cost 25,000 3. What amount of rental income should be reported in the income statement of CHERRY CO. for the year ended December 31, 2019? PAGE 1 OF 1 E ENGLISH (PHILIPPINES) 97 WORDS + 132 % 29°C ENG 1:03 pm W Rain US 04/07/2022
Transcribed Image Text:done - Word (Product Activation Failed) FILE HOME INSERT DESIGN PAGE LAYOUT REFERENCES MAILINGS REVIEW VIEW Microsoft account - X Cut A Find - Calibri (Body) 11 - A A Aa - AaBbCcDc AaBbccDc AaBbC AaBbCcC AaB| AaBbCcc AaBbCcD AaBbCcDt Ee Copy ac Replace Paste BIU - abe X, x A - aly - A I Normal I No Spac. Heading 1 Heading 2 Subtitle Subtle Em. Emphasis Title Format Painter A Select - Clipboard Font Paragraph Styles Editing ABC L 1 1.. . 3 4 .. .I. ...A . . . 7 . . On January 1, 2019 ZHAVY Co. leased office furniture from CHERRY CO. under operating lease. Payments on the will be made as follows: December 31, 2019 230,000 December 31, 2020 December 31, 2021 250,000 270,000 As an inducement to enter the lease, CHERRY CO. granted ZHAVY CO. the first six months of the lease rent-free. SINAG also paid the following: Initial direct cost 100,000 Security deposit 50,000 Lease Bonus 60,000 Insurance and Maintenance cost 25,000 3. What amount of rental income should be reported in the income statement of CHERRY CO. for the year ended December 31, 2019? PAGE 1 OF 1 E ENGLISH (PHILIPPINES) 97 WORDS + 132 % 29°C ENG 1:03 pm W Rain US 04/07/2022
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