The ledger of Hammond, Inc., on March 31, 2014, includes these selected accounts before adjusting entries are prepared.

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 equipment depreciates $200 a month.
4. One-half of the unearned service revenue was recognized in March.
Prepare the adjusting entries for the month of March.

Transcribed Image Text:

Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Unearned Service Revenue Debit $ 3,600 2,800 25,000 Credit $5,000 9,200