Prepare the appropriate reversing entries

Question

At December 31, 2013, for the Microchip Company for each of the following situations assume that no financial statements were prepared during the year and no adjusting entries were recorded.

1.	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. Prepaid rent 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.

    

Required:

2.

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.