The ledger of Welch Rental Agency Inc. on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

An analysis of the accounts shows the following.
1. The equipment depreciates $300 per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $1,100.
5. Insurance expires at the rate of $200 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.

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Debit Credit Prepaid Insurance $ 3,600 Supplies Equipment 2,800 25,000 Accumulated Notes Payable Depreciation Equipment Unearned Rent $ 8,400 20,000 12,000 Rent Revenue 60,000 Interest Expense -0- Wages Expense 14,000