The ledger of Hammond Company, on March 31, 2012, includes these selected accounts before adjusting entries are prepared.
|
Debit |
Credit |
|
|
Prepaid Insurance |
$ 3,600 |
|
|
Supplies |
2,800 |
|
|
Equipment |
25,000 |
|
|
Accumulated Depreciation—Equipment |
||
|
Unearned Service Revenue |
9,200 |
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $100 per month.
2. Supplies on hand total $800.
3. The equipment depreciates $200 a month.
4. One half of the unearned service revenue was earned in March.
Prepare the adjusting entries for the month of March.