The following transactions occurred during December 31, 2021, for the Microchip Company On October 1, 2021, Microchip lent $80,000 to another company A note was signed with principal and 8 interest to be paid on September 30, 2022 On November 1, 2021, the company paid its landlord $2,800 representing rent for the months of November through January Prepaid rent was debited On August 1, 2021, collected $5,600 in advance rent from another company that is renting a portion of Microchips factory The $5,600 represents one years rent and the entire amount was credited to deferred rent revenue Depreciation on office equipment is $2,100 for the year Vacation pay for the year that had been earned by employees but not paid to them or recorded is $5,600 The company records vacation pay as salaries expense Microchip began the year with $1,200 in its asset account, supplies During the year, $4,900 in supplies were purchased and debited to supplies At year end, supplies costing $2,450 remain on hand Required 1 2 If Microchips accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 for only those entries that would be reversed 3 Prepare the appropriate reversing entries at the beginning of 2022 Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 If Microchips accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 16, 2024

The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $80,000 to another company. A note was

The following transactions occurred during December 31, 2021, for the Microchip Company.

On October 1, 2021, Microchip lent $80,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022.
On November 1, 2021, the company paid its landlord $2,800 representing rent for the months of November through January. Prepaid rent was debited.
On August 1, 2021, collected $5,600 in advance rent from another company that is renting a portion of Microchips factory. The $5,600 represents one years rent and the entire amount was credited to deferred rent revenue.
Depreciation on office equipment is $2,100 for the year.
Vacation pay for the year that had been earned by employees but not paid to them or recorded is $5,600. The company records vacation pay as salaries expense.
Microchip began the year with $1,200 in its asset account, supplies. During the year, $4,900 in supplies were purchased and debited to supplies. At year-end, supplies costing $2,450 remain on hand.

Required: 1. & 2. If Microchips accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 for only those entries that would be reversed. 3. Prepare the appropriate reversing entries at the beginning of 2022. Complete this question by entering your answers in the tabs below.

Req 1 and 2
Req 3

If Microchips accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 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.)