Exercise $2-22($Algo$)$ Reversing entries $[$Appendix $2$B$]$

The following transactions occurred during December $31,2024,$ for the Microchip Company.

On October $1,2024,$ Microchip lent $$105,000$ to another company. A note was signed with principal and $8\%$ interest to be paid on September $30,2025.$

On November $1,2024,$ the company paid its landlord $$4,600$ representing rent for the months of November through January. Prepaid rent was debited at the time of payment.

On August $1,2024,$ collected $$9,200$ in advance rent from another company that is renting a portion of Microchip's factory. The $$9,200$ represents one year's rent and the entire amount was credited to deferred rent revenue at the time cash was received.

Depreciation on office equipment is $$3,450$ for the year.

Vacation pay for the year that had been earned by employees but not paid to them or recorded is $$6,950.$ The company records vacation pay as salaries expense.

Microchip began the year with $$1,650$ in its asset account, supplies. During the year, $$5,800$ in supplies were purchased and debited to supplies. At year$-$end, supplies costing $$2,900$ remain on hand.

Required:

& $2.$ If Microchip's accountant employed reversing entries for accruals, prepare the adjusting entries at the end of $2024$ for only those entries that would be reversed.

Prepare the appropriate reversing entries at the beginning of $2025.$

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

If Microchip's accountant employed reversing entries for accruals, prepare the adjusting entries at the end of $2024$ for only those entries that would be reversed.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

On October $1,2024,$ Microchip lent $$105,000$ to another company. Principal and $8\%$ interest are to be paid on September $30,2025.$

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,],[,,,]]$