rk Chapter $2,$ Part $2$ i

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

On October $1,2024,$ Microchip lent $$90,000$ 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 $$6,000$ representing rent for the months of November through January. Prepaid rent was debited at the time of payment.

On August $1,2024,$ collected $$12,000$ in advance rent from another company that is renting a portion of Microchip's factory. The $$12,000$ 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 $$4,500$ for the year.

Vacation pay for the year that had been earned by employees but not paid to them or recorded is $$8,000.$ The company records $.$ Microtion pay as salaries expense.

$.$ Microchip began the year with $$2,000$ in its asset account, supplies. During the year, $$6,500$ in supplies were purchased and debited to supplies. At year$-$end, supplies costing $$3,250$ 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 $2$

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

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

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Journal entry worksheet

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