E3-12 On April 1, Adventures Iravel Agency Inc began operations. The following transac- Record journal entries. tions were completed during the month. (L03), AP 1. Issued common stock for $24,000 cash. 2. Obtained a bank loan for $7,000 by issuing a note payable. 3. Paid $11,000 cash to buy equipment. 4. Paid $1,200 cash for April office rent 5. Paid $1,450 for supplies. 6. Purchased $600 of advertising in the Daily Herald, on account. 7. Performed services for $18,000: cash of $2,000 was received from customers, and the balance of $16,000 was billed to customers on account. 8. Paid $400 cash dividend to stockholders. 9. Paid the utility bill for the month, $2,000. 10. Paid Daily Herald the amount due in transaction (6). 11. Paid $40 of interest on the bank loan obtained in transaction (2). 12. Paid employes salaries, $6,400. 13. Received $12,000 cash from customers billed in transaction (7). 14. Paid income tax, $1,500. Instructions Journalize the transactions. Do not provide explanations. Prepare adjusting entries from selected account data. (L02.3). AP 3.600 25,000 E4-9 The ledger of Howard Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit Supplies $ 3,000 Prepaid Insurance Equipment Accumulated DepreciationEquipment $ 8,400 Notes Payable 200 Unearned Rent Revenue Rent Revenue Interest Expense 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. 12,400 60,000 Instructions Prepare the adjusting entries at March 31, assuming that adjusting entries are made quar- terly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense