The ledger of Howard Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. LO3 Debit Credit Supplies $ 3,000 Prepaid Insurance 3,600 Equipment 25,000 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 20,000 Unearned Rent Revenue 12,400 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense 14,000 An analysis of the accounts shows the following.

1. The equipment depreciates $280 per month.

2. Half of the unearned rent revenue was earned during the quarter.

3. Interest of $400 is accrued on the notes payable.

4. Supplies on hand total $850.

5. Insurance expires at the rate of $400 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.