Exercise 3-7 The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 7,200 Supplies 2,800 Equipment 18,750 Accumulated DepreciationEquipment $ 8,400 Notes Payable 21,000 Unearned Rent Revenue 9,900 Rent Revenue 61,000 Interest Expense 0 Salaries and Wages Expense 18,000 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 totaling $525 is accrued on the notes payable for the quarter. 4. Supplies on hand total $690. 5. Insurance expires at the rate of $400 per month.