The ledger of Herrera, Inc. on March 31, 2014, includes the following selected accounts before adjusting entries.
|
Debit |
Credit |
|
|
Prepaid Insurance |
2,400 |
|
|
Supplies |
2,500 |
|
|
Equipment |
30,000 |
|
|
Unearned Service Revenue |
9,000 |
An analysis of the accounts shows the following.
- Insurance expires at the rate of $300 per month.
- Supplies on hand total $1,100.
- The equipment depreciates $500 per month.
- During March, services were performed for two-fifths of the unearned service revenue.
Prepare the adjusting entries for the month of March.