Trey Co. entered into the following two transactions. Trey prepares financial statements annually at ...
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Accounting
Trey Co entered into the following two transactions. Trey prepares financial statements annually at
Exercise
December
Preparing reversing entries
a Trey rents a building for $ per month beginning December By agreement, Trey paid cash for
P
both December and January rent on January
b Trey rents space in a building it owns to a tenant for $ per month. Trey agreed to allow the tenant to delay payment for December and January rent until January when the tenant paid cash for both months.
Required
Prepare adjusting entries the company must record for these events as of December
Assuming Trey does not use reversing entries, prepare journal entries to record Trey's payment of rent on January and the collection of the tenant's rent on January
Assuming Trey uses reversing entries, prepare reversing entries on January Also prepare journal entries to record Trey's payment of rent on January and the receipt of the tenant's rent on January
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