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Requirement 1
Introduction:
To determine: Adjusting entries based on the information in (a) and (b) of Trey Company.
Requirement 2
Introduction: Reversing Entries are the entries that will be made to remove adjusting entries which was created to close the accounts on prior accounting period. These are made on first date of next accounting period. In this requirement we consider that we do not use reversing entries
To determine: Journal entries based on the information in (a) and (b) of Trey Company.
a) Payment of rent
| Dr | Cr | |
| Rent Expense Account | $2,800 | |
| Rent Payable Account | $2,800 | |
| cash | $5600 |
b) Receipt of rent
| Dr | Cr | |
| cash | $1700 | |
| Rent Revenue Account | $850 | |
| Rent Receivable Account | $850 |
Requirement 3
Introduction: Reversing Entries are the entries that will be made to remove adjusting entries which was created to close the accounts on prior accounting period. These are made on first date of next accounting period.
To determine: Reversing entries and Journal entries based on the information in (a) and (b) of Trey Company.
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Chapter 4 Solutions
Loose Leaf for Fundamental Accounting Principles
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