2. Question Seven: (5 marks) The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accou before adjusting entries have been prepared. Prepaid Insurance $ 3,600 Equipment Notes Payable Rent Revenue 25,000 20,000 60,000 Supplies $2,800 Accumulated Depreciation-Equipment 8,400 Unearned Rent Revenue Wages Expense 9,900 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 $700. 5. Insurance expires at the rate of $200 per month. Required: Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. # Dr Cr 1.