A property company received cash for rent totalling $838,600 in the year ended 31 December 2006.
Figures for rent in advance and in arrears at the beginning and end of the year were:
                                                                                 31 December 2005                31 December 2006
                                                                                                  $                                                 $
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 2006 for rental
income?
A  $818,600
B  $738,000
C  $939,200
D  $858,600

D 838,600 + (102,600 – 42,300) – (88,700 – 48,400)