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The following two events occurred for Trey Co. on October 31, 2013, the end of its fiscal year.
a. Trey rents a building from its owner for $2,800 per month. By 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.
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