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hi I need the answer to "Susquehanna equipment rentals" On December 1 year 1 john and...

hi I need the answer to "Susquehanna equipment rentals" On December 1 year 1 john and patty driver formed a corp called Susquehanna eqipment the new corporation was able to begin operations immediatly by purchasing the assets and talking over the location of rent it. it has to be 18th edition accounting only finding older stuff thank you

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Susequehanna equipment rentals are the direct revenue to the Susquehenna Equipment Corporation. Thus, the amount received as equipment rentals shall directly be credited to the profit and loss account of the corporation as and when such rentals is accrued and due. Thus, the profit and loss earned by the corporation for a particular financial year shall be determined by talking into consideration the equipment rental and correctly recording the same in the profit and loss account of the corporation. In case of any subsequent loss due to the inability of the corporation to recover any equipment rental then the same shall be charged in the profit and loss account to give effect to the actual profit and loss of the corporation in a particular financial year.

It is important to note that since Susequehenna Equipment Corporation deals in equipment and provide the equipment on rental to its customers the Susequehanna equipment rentals are direct income of the company and accordingly, shall be classified in the profit and loss account of the corporation.

Recognition of revenue from such rental correctly in the profit and loss account of a company is critical to the proper disclosure of financial performance and financial position of a company in its financial statements. Thus, the corporation in this case shall also record the equipment rentals correctly in the financial statements to correctly show the financial performance and position of it in its financial statements.   

ekkarill92 answered 1 year ago
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