Reference no: EM132172884
Question - On October 1, 2016, Microchip lent $89,000 to another company. A note was signed with principal and 10% interest to be paid on September 30, 2017.
On November 1, 2016, the company paid its landlord $9,000 representing rent for the months of November through January. Prepaid rent was debited.
On August 1, 2016, collected $15,000 in advance rent from another company that is renting a portion of Microchip's factory. The $15,000 represents one year's rent and the entire amount was credited to rent revenue.
Depreciation on office equipment is $5,500 for the year.5.Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,000. The company records vacation pay as salaries expense.
Microchip began the year with $3,000 in its asset account, supplies. During the year, $7,500 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,750 remain on hand.
Prepare the necessary adjusting entries for each of the above situations.