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If Microchip's accountant employed reversing entries for prepaid expenses, prepare the original transactions creating the prepayments. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
- On October 1, 2013, Microchip lent $91,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2014.
- 2. On November 1, 2013, the company paid its landlord $9,600 representing rent for the months of November through January. Rent expense was debited.
- 3. On August 1, 2013, collected $15,600 in advance rent from another company that is renting a portion of Microchip's factory. The $15,600 represents one year's rent and the entire amount was credited to rent revenue.
- 4. Depreciation on machinery is $5,700 for the year.
- 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,200.
- 6. Microchip began the year with $3,200 in its asset account, supplies. During the year, $7,700 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,850 remain on hand.
If Microchip's accountant employed reversing entries for prepaid expenses, prepare the adjusting entries at the end of 2013. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
- On October 1, 2013, Microchip lent $91,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2014.
- 2. On November 1, 2013, the company paid its landlord $9,600 representing rent for the months of November through January. Rent expense was debited.
- 3. On August 1, 2013, collected $15,600 in advance rent from another company that is renting a portion of Microchip's factory. The $15,600 represents one year's rent and the entire amount was credited to rent revenue.
- 4. Depreciation on machinery is $5,700 for the year.
- 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,200.
- 6. Microchip began the year with $3,200 in its asset account, supplies. During the year, $7,700 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,850 remain on hand.
Prepare the appropriate reversing entries at the beginning of 2014. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
- On October 1, 2013, Microchip lent $91,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2014.
- 2. On November 1, 2013, the company paid its landlord $9,600 representing rent for the months of November through January. Rent expense was debited.
- 3. On August 1, 2013, collected $15,600 in advance rent from another company that is renting a portion of Microchip's factory. The $15,600 represents one year's rent and the entire amount was credited to rent revenue.
- 4. Depreciation on machinery is $5,700 for the year.
- 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,200.
- 6. Microchip began the year with $3,200 in its asset account, supplies. During the year, $7,700 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,850 remain on hand.
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