FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following two events occurred for Trey Co. on October 31, the end of its fiscal year.
a. Trey rents a building from its owner for $2,800 per month. By a prearrangement, the company delayed
paying October’s rent until November 5. On this date, the company paid the rent for both
October and November.
b. Trey rents space in a building it owns to a tenant for $850 per month. By prearrangement, the tenant
delayed paying the October rent until November 8. On this date, the tenant paid the rent for both
October and November.
Required
1. Prepare
2. Assuming Trey does not use reversing entries, prepare
on November 5 and the collection of the tenant’s rent on November 8.
3. Assuming that the company uses reversing entries, prepare reversing entries on November 1 and the
journal entries to record Trey’s payment of rent on November 5 and the collection of the tenant’s rent
on November 8.
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