1. On October 1, 2016, Microsun lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2017. 2. On November 1, 2016, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2016, collected $12,000 in advance rent from another company that is renting a portion of Microsun's factory. The $12,000 represents one year's rent and the entire amount was credited to rent revenue. 4. Depreciation on office equipment is $4,500 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. 6. Microsun began the year with $2,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,250 remain on hand. Required: 1. Prepare the necessary adjusting entries at December 31, 2016, for the Microsun Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries had been recorded. 2. If Microsun's accountant employed reversing entries for accruals, which adjusting entries would she likely reverse at the beginning of the following year? 3. Prepare the appropriate reversing entries at the beginning of 2017. 4. Suppose for item #6 that Microsun began the year with $2,000 in its Supplies Expense account. During the year, $6,500 in supplies were purchased and debited to Supplies Expense. At year-end, supplies costing $3,250 remain on hand. Prepare the adjusting journal entry. 5. Given the situation described in Requirement 4 above, prepare the reversing journal entry, if one is deemed necessary.