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llowing transactions occurred for the Microchip Company. October 1, 2021, Microchip lent $98,000 to another company. A note was signed with principal and 9% in otember 30, 2022. November 1, 2021, the company paid its landlord $11,700 representing rent for the months of November t -paid rent was debited. August 1, 2021, collected $17,700 in advance rent from another company that is renting a portion of Micro ,700 represents one year's rent and the entire amount was credited to deferred rent revenue. preciation on office equipment is $6,400 for the year. cation pay for the year that had been earned by employees but not paid to them or recorded is $9,900. TI ation pay as salaries expense. crochip began the year with $3,900 in its asset account, supplies. During the year, $8,400 in supplies were bited to supplies. At year-end, supplies costing $4,200 remain on hand. re the necessary adjusting entries at December 31, 2021 for each of the above situations. Assume that no prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction

llowing transactions occurred for the Microchip Company. October 1, 2021, Microchip lent $98,000 to another company. A note was signed with principal and 9% in otember 30, 2022. November 1, 2021, the company paid its landlord $11,700 representing rent for the months of November t -paid rent was debited. August 1, 2021, collected $17,700 in advance rent from another company that is renting a portion of Micro ,700 represents one year's rent and the entire amount was credited to deferred rent revenue. preciation on office equipment is $6,400 for the year. cation pay for the year that had been earned by employees but not paid to them or recorded is $9,900. TI ation pay as salaries expense. crochip began the year with $3,900 in its asset account, supplies. During the year, $8,400 in supplies were bited to supplies. At year-end, supplies costing $4,200 remain on hand. re the necessary adjusting entries at December 31, 2021 for each of the above situations. Assume that no prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section: Chapter Questions
Problem 1MP
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The following transactions occurred for the Microchip Company. 1. On October 1, 2021, Microchip lent $98,000 to another company. A note was signed with principal and 9% interest to be paid on September 30, 2022. 2. On November 1, 2021, the company paid its landlord $11,700 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2021, collected $17,700 in advance rent from another company that is renting a portion of Microchip's factory. The $17,700 represents one year's rent and the entire amount was credited to deferred rent revenue. 4. Depreciation on office equipment is $6,400 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,900. The company records vacation pay as salaries expense. 6. Microchip began the year with $3,900 in its asset account, supplies. During the year, $8,400 in supplies were purchased and debited to supplies. At year-end, supplies costing $4,200 remain on hand. Prepare the necessary adjusting entries at December 31, 2021 for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet ...... No Transaction General Journal Debit Credit 1 Interest receivable 8,820 Interest receivable 8,820
Transcribed Image Text:The following transactions occurred for the Microchip Company. 1. On October 1, 2021, Microchip lent $98,000 to another company. A note was signed with principal and 9% interest to be paid on September 30, 2022. 2. On November 1, 2021, the company paid its landlord $11,700 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2021, collected $17,700 in advance rent from another company that is renting a portion of Microchip's factory. The $17,700 represents one year's rent and the entire amount was credited to deferred rent revenue. 4. Depreciation on office equipment is $6,400 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,900. The company records vacation pay as salaries expense. 6. Microchip began the year with $3,900 in its asset account, supplies. During the year, $8,400 in supplies were purchased and debited to supplies. At year-end, supplies costing $4,200 remain on hand. Prepare the necessary adjusting entries at December 31, 2021 for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet ...... No Transaction General Journal Debit Credit 1 Interest receivable 8,820 Interest receivable 8,820
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Step 1

The procedure of entering commercial transactions for the first time in the books of accounts is known as journal entry. Adjusting entries, closing entries, and regular entries are examples of diary entries. Journal entries serve as the foundation for further accounting tasks such as ledger account preparation, trial balances, financial statements, and so on. The initial, meticulous recording of all monetary business transactions is called a journal entry. They are listed in chronological sequence based on the date of the incident. Adjusting entries, closing entries, and regular entries are examples of diary entries.

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