Question
The following transactions occurred during December 31, 2018, for the Microchip Company. 1. On October 1, 2018, Microchip lent $97,000 to another company. A note
The following transactions occurred during December 31, 2018, for the Microchip Company.
1. On October 1, 2018, Microchip lent $97,000 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 $11,400 representing rent for the months of November through January. Prepaid rent was debited.
3. On August 1, 2018, collected $17,400 in advance rent from another company that is renting a portion of Microchips factory. The $17,400 represents one years rent and the entire amount was credited to rent revenue.
4. Depreciation on office equipment is $6,300 for the year.
5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,800. The company records vacation pay as salaries expense.
6. Microchip began the year with $3,800 in its asset account, supplies. During the year, $8,300 in supplies were purchased and debited to supplies. At year-end, supplies costing $4,150 remain on hand.
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