Exercise 4-09

The ledger of Pina Colada Corp. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

DebitCreditSupplies

$3,600Prepaid Insurance

4,320Equipment

30,000Accumulated DepreciationEquipment

$10,080Notes Payable

24,000Unearned Rent Revenue

14,880Rent Revenue

72,000Interest Expense

0Salaries and Wages Expense

16,800

An analysis of the accounts shows the following.

1.The equipment depreciates $336 per month.2.Half of the unearned rent revenue was earned during the quarter.3.Interest of $480 is accrued on the notes payable.4.Supplies on hand total $1,020.5.Insurance expires at the rate of $480 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

how do I determine the depreciation expense and the insurance expense