Question

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 adjusting entries that the company must record for these events as of October 31 2. Assuming Trey does not use reversing entries, prepare journal entries to record Trey's payment of rent 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.

Answer 1

Debit Credit Answer: Journal Entires Date Account Tittle a) Oct 31 Rent Expenses Rent Payable 2800 2800 Oct 31 850 Rent Recevable Rent Revenue 8501 b) Nov 5 2800 Rent Payable Rent Expenses Cash 2800 5600 Nov 5 1700 Cash Rent Recevable Rent Revenue 850 850 C) Nov 1 2800 Rent payable Rent Expenses 2800 Nov 1 850 Rent Revenue Rent Receiavble 850 Nov 5 5600 Rent Expenses Cash 5600 Nov 5 1700 Cash Rent Revenue 17001