The ledger of Herrera, Inc. on March 31, 2020, includes the following selected accounts before adjusting entries.

An analysis of the accounts shows the following.

1. Insurance expires at the rate of $300 per month.

2. Supplies on hand total $1,100.

3. The equipment depreciates $500 per month.

4. During March, services were performed for two-fifths of the unearned service revenue.

Prepare the adjusting entries for the month of March.

Transcribed Image Text:

Debit Credit $ 2,400 Prepaid Insurance Supplies 2,500 Equipment 30,000 Unearned Service Revenue $9,000