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a) $453,600
b) $440,200
c) $465,900
d) $475,600
2. Troy, a property company, received cash totalling $838,600 from tenants during the year ended 31 December
20X6.
Figures for rent in advance and in arrears at the beginning and end of the year were:
31 December 31 December
20X5 20X6
$ $
Rent received in advance 102,600 88,700
Rent in arrears (all subsequently received) 42,300 48,400
What amount should appear in the company's income statement for the year ended 31 December 20X6 for
rental income?
a) $818,600
b) $738,000
c) $939,200
d) $858,600
What figures should be included in the company's financial statements for the year ended 30 June 20X6?
5. At 1 September, the motor expenses account showed 4 months' insurance prepaid of $80 and petrol accrued
of $95. During September, the outstanding petrol bill is paid, plus further bills of $245. At 30 September there
is a further outstanding petrol bill of $120.
The amount to be shown in the income statement for motor expenses for September is:
a) $385
b) $415
c) $445
d) $460
6. On 1 May 20X0, A pays a rent bill of $1,800 for the period to 30 April 20X1. What is the charge to the income
statement and the entry in the statement of financial position for the year ended 30 November 20X0?
a) $1,050 charge to income statement and prepayment of $750 in the statement of financial position
b) $ 1,050 charge to income statement and accrual of $750 in the statement of financial position
c) $1,800 charge to income statement and no entry in the statement of financial position
d) $750 charge to income statement and prepayment of $1,050 in the statement of financial position
7. The electricity account for the year ended 30 June 20X3 was as follows:
$
Opening balance for electricity accrued at 1 July 20X2 300
Payments made during the year:
1 August 20X2 for three months to 31 July 20X2 600
1 November 20X2 for three months to 31 October 20X2 720
1 February 20X3 for three months to 31 January 20X3 900
30 June 20X3 for three months to 30 April 20X3 840
Which of the following is the appropriate entry for electricity?
8. The annual insurance premium for S for the period 1 July 20X3 to 30 June 20X4 is $13,200, which is 10% more
than the previous year. Insurance premiums are paid on 1 July.
What is the income statement charge for insurance for the year ended 31 December 20X3?
a) $11,800
b) $12,540
c) $12,600
d) $13,200
10. On the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8, it paid,
in full, the annual insurance invoice of $36,000, to cover the following year.
The amount charged in the income statement and the amount shown in the statement of financial position at
the year-end is: