1 AJE (Version 2) On March 31, 2020, Easy Rental Agency Inc.'s trial balance included the following selected unadjusted account balances. The company's year-end is December 31 and it adjusts its accounts quarterly 3 Debit Credit 5 Prepaid Insurance $ 14,770 5 Supplies 2,870 7 Equipment 22,400 3 Accumulated Depreciation-Equipment $ 5,600 e Unearned Rent Revenue 9,720 Loan payable, due 2022 20,800 1 Rent Revenue 30,700 2. Salaries and Wages Expense 14,400 4 5 An analysis of the accounts shows the following. 1. The equipment, which was purchased on January 1, 2019, is estimated to have a useful life of four 5 years. The company uses straight-line depreciation. 7 2. One third of the unearned revenue related to rent is still unearned at the end of the quarter. 3. The loan payable has an interest rate of 6%. Interest is paid on the first day of each following B month and was last paid March 1, 2020. B 4. Supplies on hand total $880 at March 31. 5. The one-year insurance policy was purchased for $14,770 on January 1. 6. Income tax is estimated to be $2,500 for the quarter. 2 3 Instructions Prepare the quarterly adjusting entries required at March 31. (Omit explanations.) I AJE V2 New.. A H B C D E F G 23 instructions 24 Prepare the quarterly adjusting entries required at March 31. (Omit explanations.) 25 26 Please use the space below to show support for your calculations. 27 28 29 30 31 32 33 34 35 36 37 38 Use the template below to prepare your adjusting entries (please put text under account 39 titles column and the numbers in the debits and credit columns): Account Titles Debit Credit 1 40 41 42 43 44 45 46 2 47 48 49 50 3 AJE V2 New