The following conditions existed for Maxit Co. on October 31, 2014, the end of its fiscal year:
a. Maxit rents a building 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. Maxit 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 the adjusting entries that Maxit should record for these situations as of October 31.
2. Assuming that Maxit does not use reversing entries, prepare journal entries to record Maxit's payment of rent on November 5 and the collection of rent on November 8 from Maxit's tenant.
3. Assuming that Maxit does use reversing entries, prepare those entries and the journal entries to record Maxit's payment of rent on November 5 and the collection of rent on November 8 from Maxit's tenant.