Practice Activity 6.12 Measurement and recognition of rent income received in the financial statemen

Practice Activity 6.12 Measurement and recognition of rent income received in the financial statements

The facts are the same as practice activity 6.11.

Required: For the year ended 30 June 2016, show the:

i. Extract of the statement of profit or loss; and

ii. Excerpt of the statement of financial position at the same date.

Suggested answer to practice activity 6.12

i. Statement of profit or loss for the year ended 30 June 2016 (an extract)

The prepaid c/d represents prepaid income. Prepaid income b/d is on the rent income account's credit side, which is a current liability. Remember the elements of financial statements.

ii.