Reference no: EM131713999

Question - The following transactions occurred during December 31, 2018, for the Microchip Company.

1. On October 1, 2018, Microchip lent $99,000 to another company. A note was signed with principal and 10% interest to be paid on September 30, 2019.

2. On November 1, 2018, the company paid its landlord $12,000 representing rent for the months of November through January. Prepaid rent was debited.

3. On August 1, 2018, collected $18,000 in advance rent from another company that is renting a portion of Microchip's factory. The $18,000 represents one year's rent and the entire amount was credited to rent revenue.

4. Depreciation on office equipment is $6,500 for the year.

5. Vacation pay for the year that hap been earned by employees but not paid to them or recorded is $10,000. The company records vacation pay as salaries expense.

6. Microchip began the year with $4,000 in its asset account, supplies. During the year, $8,500 in supplies were purchased and debited to supplies. At year-end, supplies costing $4,250 remain on hand.

Required - Prepare the necessary adjusting entries for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.