What is the liability reported in the statement of financial position relating to the rent at 30 September 20X5?

DEF prepares its financial statements to 30 September each year On 1 March 20X5 DEF acquires an office and immediately rents it to a tenant charging $2,400 a quarter payable in advance.

The tenant pays $2,400 on each of the following days 1 March 20X5, 6 June 20X5, 4 September 20X5 and 1 December 20X5.

What is the liability reported in the statement of financial position relating to the rent at 30 September 20X5?
A . $7,200
B . $1,600
C . $4,000
D . $5,600

View Answer

Answer: D