EXERCICE 3

Current Attempt in Progress

The ledger of Oriole 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		$ 7,200
Supplies		2,700
Equipment		18,750
Accumulated DepreciationEquipment				$ 8,400
Notes Payable				20,000
Unearned Rent Revenue				9,900
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 $ 300 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 $ 530.
5.		Insurance expires at the rate of $ 400 per month.

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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Mar. 31	enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
2.	Mar. 31	enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
3.	Mar. 31	enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
4.	Mar. 31	enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
5.	Mar. 31	enter an account title for the adjusting entry on March 31	enter a debit amount	enter a credit amount
		enter an account title for the adjusting entry on March 31	enter a debit amount