Question: Adjustments Assume that no financial statements were prepared during the year and no adjusting entries were recorded. 1. Depreciation on machinery is $2,400 for the year. 2. On October 1, 2021, Microchip lent $10,000 to another company. A note was signed with principal and 12% interest to be paid on September 30, 2022. 3. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid Rent was debited. 4. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip's factory. The $12,000 represents one year's rent. 5. Salaries for the year that had been earned by employees but not paid to them or recorded is $7,200. 6. Microchip began the year with $1,500 in its asset account, supplies. During the year, $6,000 in supplies were purchased and debited to supplies. At year-end, supplies costing $1,000 remain on hand. 1. For each transaction, determine whether the transaction is accruals or deferrals. 2. Prepare the necessary adjusting entries at December 31, 2021, for the Microchip Company for each of the following situations.