On October 1, 2024, Microchip lent $94,000 to another company A note was signed with principal and 10 interest to be paid on September 30, 2025 On November 1, 2024, the company paid its landlord $10,500 representing rent for the months of November through January Prepaid rent was debited at the time of payment On August 1, 2024, collected $16,500 in advance rent from another company that is renting a portion of Microchips factory The $16,500 represents one years rent and the entire amount was credited to deferred rent revenue at the time cash was received Depreciation on office equipment is $6,000 for the year Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,500 The company records vacation pay as salaries expense Microchip began the year with $3,500 in its asset account, supplies During the year, $8,000 in supplies were purchased and debited to supplies At year end, supplies costing $4,000 remain on hand Required Prepare the necessary adjusting entries at December 31, 2024 for each of the above situations Assume that no financial statements were prepared during the year and no adjusting entries were recorded

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Posted on Aug 13, 2024

On October 1, 2024, Microchip lent $94,000 to another company. A note was signed with principal and 10% interest to be paid on September 30,

On October 1, 2024, Microchip lent $94,000 to another company. A note was signed with principal and 10% interest to be paid on September 30, 2025.
On November 1, 2024, the company paid its landlord $10,500 representing rent for the months of November through January. Prepaid rent was debited at the time of payment.
On August 1, 2024, collected $16,500 in advance rent from another company that is renting a portion of Microchips factory. The $16,500 represents one years rent and the entire amount was credited to deferred rent revenue at the time cash was received.
Depreciation on office equipment is $6,000 for the year.
Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,500. The company records vacation pay as salaries expense.
Microchip began the year with $3,500 in its asset account, supplies. During the year, $8,000 in supplies were purchased and debited to supplies. At year-end, supplies costing $4,000 remain on hand.

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Prepare the necessary adjusting entries at December 31, 2024 for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.