week 3 E2-9 - 4 Depreciation on machinery is $5,200 for the...

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E 2-9 Adjusting entries LO4 LO5 Prepare the necessary adjusting entries at December 31, 2006, 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.
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1. On October 1, 2006, Microchip lent $82,500 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2007. 2. On November 1, 2006, the company paid its landlord $5,700 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2006, collected $12,500 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,500 represents one year’s rent and the entire amount was credited to rent revenue.
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Unformatted text preview: 4. Depreciation on machinery is $5,200 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,900 . 6. Microchip began the year with $1,800 in its asset account, supplies. During the year, $6,800 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,288 remain on hand. Round answers to nearest whole number. 1. Interest Receivable 1,650 Interest Revenue 1,650 2. Rent Expense 3,800 Prepaid Rent 3,800 3. Rent Revenue 7,292 Unearned Rent Revenue 7,292 4. Depreciation Expense 5200 Accumulated Depreciation 5200 5. Salaries Expense 8900 Salaries Payable 8900 6. Supplies Expense 5,312 Supplies 5,312...
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week 3 E2-9 - 4 Depreciation on machinery is $5,200 for the...

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