Exercise 3-7 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 10,800 2,800 31,250 Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense 8,700 20,000 10,800 60,000 0 17,000 An analysis of the accounts shows the following 1. The equipment depreciates $500 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 $600 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 2. Mar. 31 3. Mar. 31 4. Mar. 31 5. Mar. 31