E3.8 (LO 2, 3) The ledger of Villa Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense An analysis of the accounts shows the following. 1. The equipment depreciates 400 per month. 2. One-third of the unearned rent revenue was recognized as revenue during the quarter. 3. Interest of 500 is accrued on the notes payable. Debit 3,600 2,800 25,000 -0- 14,000 Credit 8,400 20,000 10,200 60,000 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, Interest Payable, and Supplies Expense. Prepare adjusting entries