The following transactions occurred during december 31, 2018, for the microchip company.
1) on october 1, 2021, microchip lent $84,000 to another company. a note was signed with principal and 10% interest to be paid on september 30, 2022.
2) on november 1, 2021, the company paid its landlord $7,500 representing rent for the months of november through january. prepaid rent was debited.
3) on august 1, 2021, collected $13,500 in advance rent from another company that is renting a portion of microchip’s factory. the $13,500 represents one year’s rent and the entire amount was credited to deferred rent revenue.
4) depreciation on office equipment is $5,000 for the year.
5) vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,500. the company records vacation pay as salaries expense.
6) microchip began the year with $2,500 in its asset account, supplies. during the year, $7,000 in supplies were purchased and debited to supplies. at year-end, supplies costing $3,500 remain on hand.

note receivable   84,000 debit

        cash                       84,000 credit

--to record loan to another company--

prepaid rent    7,500 debit

         cash                        7,500 credit

--to record prepaid rent--

cash              13,500 debit

    unearned revenue     13,500 credit

--to record collection in advancement--

depreciation expense 5,000 debit

   accumulated depreciation equipment   5,000 credit

--to record depreication for the equipment--

salaries expense 8,500 debit

 salaries expense     8,500 credit

--to record unpaid vacation--

supplies expense   6,000 debit

        supplies                       6,000 credit

--to record consumption of supplies--

Explanation:

We make sure debit = credit so one account for each side at least.

1) we are giving cash and receicing a promissory note

the interest are not posted here. only at maturity or year-end when time past.

2) as the company is paying to obtain the right to use of the property is an asset not an expense

3) similar as before, the company by accepting the money has the obligation to provide that space

4) the expense in the debit and the contra-asset account in the credit so iut diiminish equipment net value

5) we declare the expense and the payable as we didn't pay our employees

6) we had 2,500 we purchase for 7,00 that's a total of 9,500 worth of supplies as we end the year with 3,500 the difference should be assumed used thus, expense.