The following transactions occurred during December 31, 2021, for the Microchip Company On October 1, 2021, Microchip lent $87,500 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 $3,400 representing rent for the months of November through January Prepaid rent was debited On August 1, 2021, collected $6,800 in advance rent from another company that is renting a portion of Microchips factory The $6,800 represents one years rent and the entire amount was credited to deferred rent revenue Depreciation on office equipment is $2,550 for the year Vacation pay for the year that had been earned by employees but not paid to them or recorded is $6,050 The company records vacation pay as salaries expense Microchip began the year with $1,350 in its asset account, supplies During the year, $5,200 in supplies were purchased and debited to supplies At year end, supplies costing $2,600 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

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The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $87,500 to another company. A note was

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

On October 1, 2021, Microchip lent $87,500 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 $3,400 representing rent for the months of November through January. Prepaid rent was debited.
On August 1, 2021, collected $6,800 in advance rent from another company that is renting a portion of Microchips factory. The $6,800 represents one years rent and the entire amount was credited to deferred rent revenue.
Depreciation on office equipment is $2,550 for the year.
Vacation pay for the year that had been earned by employees but not paid to them or recorded is $6,050. The company records vacation pay as salaries expense.
Microchip began the year with $1,350 in its asset account, supplies. During the year, $5,200 in supplies were purchased and debited to supplies. At year-end, supplies costing $2,600 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.