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EXCEL - IDEA: XBRL DOCUMENT - CHINA MEDIA INC.Financial_Report.xls
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v2.4.0.6
Note 10. Commitments and Contingencies
12 Months Ended
Jun. 30, 2012
Note 10. Commitments and Contingencies:  
Note 10. Commitments and Contingencies

NOTE 10. Commitments and Contingencies

 

The Company has entered into one office lease agreement with a former shareholder with a monthly rent of approximately $950 with a lease termination date of May 7, 2014.

 

During the period of April 1, 2010 to November 19, 2011, the Company occupied an office space belonging to Shaan’Xi Railway Transportation Trade Company (SXRT), a company owned by a business friend of Dean Li, the President and Shareholder of Xi’An TV, for free. In return, the Company issued a note of $1,423,240 to SXRT with an interest rate of 3%. Although the Company did not make the monthly rent payment to SXRT, the Company recorded imputed rent expense and imputed interest income of $47,992 in fiscal year 2012 and $24,679 in fiscal year 2011 based on interest rate for one-year loan published by Xi’An Commercial Bank since the interest income surrendered is determinable and measureable.

 

The Company’s remaining commitments for minimum lease payments under the non-cancelable operating lease are as follows:

 

For Years Ended June 30,

 

 

2013

 

$

22,239

2014

 

 

10,567

Total:

 

$

32,807

 

 

Rent expenses for the years ended June 30, 2012 and 2011 were $80,339 and $41,622, respectively.