Question

Check my work 3 Bock Print ferences Exercise 2-22 (Algo) Reversing entries (Appendix 2B] The following transactions occurred during December 31, 2021, for the Microchip Company 1. On October 1, 2021, Microchip lent $97,500 to another company. A note was signed with principal and 8% Interest to be paid on 2. On November 1, 2021, the company paid its landlord $4,000 representing rent for the months of November through January 3. On August 1, 2021, collected $8,000 in advance rent from another company that is renting a portion of Microchip's factory. The $8,000 represents one year's rent and the entire amount was credited to deferred rent revenue. 4. Depreciation on office equipment is $3,000 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $6,500. The company records 6. Microchip began the year with $1,500 in its asset account, supplies. During the year. $5,500 in supplies were purchased and debited to supplies. At year-end, supplies costing $2750 remain on hand Required: 1. & 2. 1 Microchip's accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 for only 3. Prepare the appropriate reversing entries at the beginning of 2022 Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Mimi ne honen har sine Me < Prev 3 of 6 Next >

Answer 1

Adjusting entries
Sr No	Particulars	Debit	Credit
1	Interest receivable	1950
	Interest Income		1950
	(97500*8%*3/12)
2	Rent expense	2667
	Prepaid rent		2667
	(4000*2/3)
3	Deferred rent revenue	3333
	Rent revenue		3333
	(8000*5/12)
4	Depreciation	3000
	Acc depreciation		3000
5	Salary expense	6500
	Salary payable		6500
6	Supplies expense	4250
	Supplies		4250
	(1500+5500-2750)