Question

This fact pattern provides information for Q#28 and Q#29. Rent Revenues in Year 3 were $57. Rent Receivable at Dec 31 in Years 1, 2 and 3, respectively were: $8, $3 and ?, respectively. Unearned Rent Revenue in Years 1, 2 and 3, respectively were: $9, $11 and $8. Cash collected from tenants in Year 2 and 3, respectively were $49 and $43. Enter positive values without + signs, without 's' signs and without commas. Click Save and Submit to save and submit. Click Save All Answers to see all answers Save All IN 77 $ 4 % 5 A 6 & 7 옥 * 8 9 E R т Y U 0 F G I J к с V B N. M.

29

Answer 1

Rent revenue for year 2

Particulars Amount($)

Cash received during year 2 49

Add: Rent receivale year 2 3

Less: Rent receivale year 1 (8)

Add: Unearned rent year 1 9   

Less: Unearned rent year 2 (11)

Rent Revenue Year 2 42

Note

1) ​​​​​​Rent receivable of year 2 is the income of year 2. So it must have to add with the rent received of year 2. Whereas Rent Receivale of year 1 is the income of year 1 which is received in cash in year 2. So rent receivale for year 1 must have to deduct from the cash received as rental income in year 2.

2) Unearned rent of year 1 is the rental income of the year 2 which was received in year 1. So, it must have to be added with the cash received as rent of year 2.

But unearned rent of year 2 is the income of year 3 for which cash is received in advance in year 2. So this amount must have to be deducted from the cash received of year 2.

3) Unearned income of year 3 has no use for the computation of the year 2 rental income. So this amount should be ignored.