The following two events occurred for Tanger Co. on October 31, 2011, the end of its fiscal year.
a. Tanger rents a building from its owner for $3,200 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. Tanger rents space in a building it owns to a tenant for $750 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 Tanger does not use reversing entries, prepare journal entries to record Tanger’s payment of rent on November 5 and the collection of rent on November 8 from Tanger’s tenant.
3. Assuming that the company uses reversing entries, prepare reversing entries on November 1 and the journal entries to record Tanger’s payment of rent on November 5 and the collection of rent on November 8 from Tanger’s tenant.