The ledger of Hammond, Inc., on March 31, 2008, includes the following selected accounts before adjusting entries.
|
|
Debit |
Credit |
|
Prepaid Insurance |
3,600 |
|
|
Office Supplies |
2,800 |
|
|
Office Equipment |
25,000 |
|
|
Accumulated Depreciation—Office Equipment |
|
5,000 |
|
Unearned 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 office equipment depreciates $200 a month.
4. One half of the unearned revenue was earned in March.
Prepare the adjusting entries for the month of March.