90.2K

Verified Solution

Link Copied!

The following transactions occurred during December 31, 2021, for the Microchip Company 1. On October 1, 2021, Microchip lent $82,500 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022 2 on November 1, 2021, the company paid its landlord $3,000 representing rent for the months of November through January Prepaid rent was debited 3. On August 1, 2021, collected $6,000 in advance rent from another company that is renting a portion of Microchip's factory. The $6,000 represents one year's rent and the entire amount was credited to deferred rent revenue 4. Depreciation on office equipment is $2,250 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $5.750. The company records vacation pay as salaries expense. 6 Microchip began the year with $1250 in its asset account, supplies. During the year, $5,000 in supplies were purchased and debited to supplies. At year-end, supplies costing $2,500 remain on hand Required: 1. & 2. Microchip's accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 for only those entries that would be reversed. 3. Prepare the appropriate reversing entries at the beginning of 2022 Complete this question by entering your answers in the tabs below. Seg 1 und 2 Pega Il Microchip's accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 for only those entries that would be reversed. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Journal entry worksheet 1 2 4 5 6 On October 1, 2021, Microchip lent $82,500 to another company. Principal and 8% interest are to be paid on September 30, 2022. Note: Enter debits before credits. Transaction General Journal Debit Credit 1,650 1.650 Record entry Clear entry View general journal entry worksheet 1 2 3 4 5 6 6 On November 1, 2021, the company paid $3,000 rent for November through January. Prepaid rent was debited. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 3,467 3,467 Record entry Clear entry View general journal

Answer & Explanation Solved by verified expert

See Answer