(Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
|
Debit |
Credit |
|
|
Prepaid Insurance |
$3,600 |
|
|
Supplies |
2,800 |
|
|
Equipment |
25,000 |
|
|
Accumulated Depreciation—Equipment |
$8,400 |
|
|
Notes Payable |
20,000 |
|
|
Unearned Rent Revenue |
6,300 |
|
|
Rent Revenue |
60,000 |
|
|
Interest Expense |
–0– |
|
|
Salaries and Wages Expense |
14,000 |
An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $650.
5. Insurance expires at the rate of $300 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Omit explanations.)