The ledger of Vuthy Real Estate agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
|
Debit |
Credit |
|
|
Prepaid insurance |
4,500 |
|
|
Supplies |
3,500 |
|
|
Equipment |
30,000 |
|
|
Accumulated depreciation of equipment |
10,500 |
|
|
Note payable |
25,000 |
|
|
Unearned rent |
10,800 |
|
|
Rent revenue |
60,000 |
|
|
Interest expense |
0 |
|
|
Wages expense |
14,000 |
Analysis of the accounts shows the following:
1. the equipment depreciate 500 per month.
2. the unearned rent represent 10800collected on December 1 for the period December 1 through March 31.
3. Interest of 750 is accrued on the notes payable.
4. Supplies on hand total 1,100.
5. the company paid 4,200 on January 1 for a 2 year insurance policy.
Required:
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.