E 2—0 Prepare the necessary adjusting entries at December 31, 2013, for the Microchip |Company for each of the following situations. Assume that noAdjusting financial statements were prepared during the year and no adjusting entriesentries were recorded. E 2—9 Guided 1. Example ' LU2—5 2. 5. E. On October 1, 2013, Microchip lent $90,000 to another company. A note was signed with principal and 0% interest to be paid onSeptember 30, 2014. On November 1, 2013, the company paid its landlord $6,000representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2013, collected $12,000 in advance rent from anothercompany that is renting a portion of Microchip's factory. The$12,000 represents one year's rent and the entire amount wascredited to rent revenue. DEpIEtjEtL't?n on machinery is $4,500 for the year. Vacation pay for the year that had been earned by employees but notpaid to them or recorded is $0,000. Microchip began the year with $2,000 in its asset account, supplies.During the year, $0,500 in supplies were purchased and debited to supplies. At year—end, supplies costing $3,250 remain on hand.