hapter 2 The following transactions occurred during the year

hapter 2 The following transactions occurred during the year ended December 31, 2016, for the Microchip Company. 1. On October 1, 2016, Microchip lent $87000 to another company. A note was signed ts with principal and 8% interest to be paid on September 30, 2017 2. On November 1, 2016, the company paid its landlord $8,400 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2016, collected $14,400 in advance rent from another company that is renting a portion of Microchip\'s factory. The $14400 represents one year\'s rent and the entire amount was credited to rent revenue. Print 4. Depreciation on office equipment is $5,300 for the year 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,800. The company records vacation pay as salaries expense. gan the year with $2.800 in its asset account, supplies. During the year $7.300 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,650 remain on hand. 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. f no entry is required for a trensaction/event, select \"No journal entry of 4 lNext>

Solution

1 Interest Receivable 1740 =87000*8%/12*3        Interest Revenue 1740 2 Rent Expense 5600 =8400/3*2          Prepaid Rent 5600 3 Rent Revenue 8400 =14400/12*7         Deferred Rent Revenue 8400 4 Depreciation Expense 5300          Accumulative Depreciation 5300 5 Salaries Expense 8800        Salaries Payable 8800 6 Supplies Expense 6450 =2800+7300-3650          Supplies 6450