Question

please help me solve for the correct amount for deferred rent revenue and rent revenue

The following transactions occurred during December 31, 2021, for the Microchip Company, 1. On October 1, 2021, Microchip lent $83,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. 2. On November 1, 2021, the company paid its landlord $7.200 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2021, collected $13,200 in advance rent from another company that is renting a portion of Microchip's factory. The $13,200 represents one year's rent and the entire amount was credited to deferred rent revenue. 4. Depreciation on office equipment is $4.900 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,400. The company records vacation pay as salaries expense. 6. Microchip began the year with $2,400 in its asset account, supplies. During the year. $6.900 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,450 remain on hand. Prepare the necessary adjusting entries 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.) No Transaction Answer is complete but not entirely correct. General Journal Interest receivable Interest revenue Credit Debit 1,660 1,660 4,800 Rent expense Prepaid rent 4,800 Deferred rent revenue 13,200

Answer 1

Entry will be:

Expense 13200

Deferred rent revenue 13200

There is no actual payment in that month , since the tenant is given free month occupancy . Deferred rent is a liability account so it will be credited and expense account will be debited .