1.The ledger of Passehl Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared.

Debit Credit

Prepaid Insurance $ 3,600

Supplies 2,800

Equipment 25,000

Accumulated DepreciationEquipment $ 8,400

Notes Payable 20,000

Unearned Rent Revenue 10,200

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 $400 per month.

2. One-third of the unearned rent revenue was earned during the quarter.

3. Interest of $500 is accrued on the notes payable.

4. Supplies on hand total $750.

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

Instructions:

Prepare the adjusting entries at March 31, assuming that adjusting entries are made

Quarterly. Additional accounts are Depreciation Expense, Insurance Expense, and Interest

Payable, and Supplies Expense.