Exercise 2-23 Reversing entries (Appendix 2B] Prepare the necessary adjusting entries at December 31, 2018, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded I. On October 1, 2018. Microchip lent S91.000 to another company A note was signed with principal and 8% interest to be paid on September 30, 2019. 2. On November 1, 2018, the company paid its landlord $9,600 representing rent for the months of November through January. Prepaid rent was debited 3. On August 1, 2018, collected $15,600 in advance rent from another company that is renting a portion of Microchip's factory. The $15,600 represents one years rent and the entire amount was credited to rent revenue 4. Depreciation on office equipment is $5,700 for the year. S. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,200. The company records vacation pay as salaries expense 6. Microchip began the year with $3,200 in its asset account, supplies. During the year, $7700 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,850 remain on hand Required 2-a. If Microchip's accountant employed reversing entries for prepaid expenses, prepare the original transactions creating the prepayments for only those entries that would be reversed 2-b. If Microchip's accountant employed reversing entries for prepaid expenses, prepare the adjusting entries at the end of 2018 for only those entries that would be reversed 3. Prepare the appropriate reversing entries at the beginning of 2019. Complete this question by entering your answers in the tabs below Req 2A Req 2BReq 3 If Microchip's accountant employed reversing entries for prepaid expenses, prepare the original transactions creating the prepayments 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.) Show less View transaction list View journal entry worksheet No Debit Credit Interest receivable Interest revenue Rent expense Prepaid rent Rent revenue Deferred rent revenue Accumulated 5 Salaries e 6 Supplies expense ies Req 2A Req 2B> Journal entry worksheet On October 1, 2018, Microchip lent $91,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2019 Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry View general journal Clear entry Journal entry worksheet On November 1, 2018, the company paid its landlord $9,600 representing rent for the months of November through January. Rent expense was debited. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry View general journal Clear entry Journal entry worksheet On August 1, 2018, collected $15,600 in advance rent from another company that is renting a portion of Microchip's factory. The $15,600 represents one year's rent and the entire amount was credited to rent revenue. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Depreciation on office equipment is $5,700 for the year. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,200. The company records vacation pay as salaries expense Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 4 Microchip began the year with $3,200 in its asset account, supplies. During the year, $7,700 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,850 remain on hand. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal