The ledger of Convenient Rental Agency on March 31 of the current year includes Prepare adjusting entries these selected accounts before adjusting entries have been prepared:

An analysis of the accounts shows the following:
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent revenue was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $850.
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.

Transcribed Image Text:

Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Wage Expense Debits Credits $ 3,600 2,800 25,000 $ 8,400 20,000 9,300 60,000 0 14,000