Chapter 2, Problem 2.23E

Reversing entries

• Appendix 2B

Refer to E 2–9 and respond to the following requirements.

Required:

1. If Microchip’s accountant employed reversing entries for prepaid expenses, which transactions would be affected?

2. Prepare the original transactions creating the prepaid expenses and the adjusting entries at the end of 2018 for the transactions you identified in requirement 1.

3. Prepare the appropriate reversing entries at the beginning of 2019.