Question

QUESTION 32 This fact pattern provides information needed for Q#32-Q#34. On Mar. 1, Year 4. Wizard rented out some office space to another firm for one year starting on that date. The monthly rent on this space is $700 and the tenant was required to pay Wizard for all 12 months on the move-in date, Mar. 1, Year 4. The Wizard received the correct amount and Wizard's bookkeeping staff treated the entire amount received as Rent Revenue on Mar. 1, Year 4 (debiting Cash and crediting Rent Revenue). Nothing else has been done in Year 4 in the accounting ment island on thin rantalainesution instantan Click Save and Submit to move and submit. Click Save All Answers to save all answers. So F $ 4 % 5 & 7 6 8 E R т Y Y U O F G H. J K C V B N M

33

Answer 1

33) In my opinion two months rent for the month of January and February for year 5 will be credited in the rent recievable account in year 4. since the rental started from march 1 of year 4, Wizard can only record rent for year 4 in the financial statement corresponding to that year which is only 10 months and not 12.

Therefore, the answer will be "1"