Question

The following two events occurred for Tankwell Co. on October 31, 2011, the end of its fiscal year:
a. Tankwell rents a building from its owner for $3,300 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. Tankwell rents space in a building it owns to a tenant for $1,050 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 Tankwell must record for these events as of October 31.
2. Assuming Tankwell does not use reversing entries prepare journal entries to record Tankwell’s payment of rent on November 5 and the collection of rent on November 8 from Tankwell’s tenant.
3. Assuming that Tankwell uses reversing entries, prepare reversing entries on November 1 and the journal entries to record Tankwell’s payment of rent on November 5 and the collection of rent on November 8 from Tankwell’s tenant.


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  • CreatedMarch 18, 2015
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