The ledger of Lefevour, Inc. on March 31, 2012, 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.
1. Insurance expires at the rate of $300 per month.
2. Supplies on hand total $1,100.
3. The equipment depreciates $500 per month.
4. 2/5 of the unearned service revenue was earned in March.
Prepare the adjusting entries for the month of March.