Expense for $575 and credited to Cash for $575 Instructions Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.) E3-5. (Adjusting Entries) (LO 3) The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. onions Bild ygur Proficiency Career Readiness Narrated Lecture esentation Ydtes $3,600 2,800 25,000 Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense Applied skills videos 8,400 20,000 9,300 60,000 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $250 per month. 2. One-third of the unearned rent was recognized as revenue during the quarter 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $850 S. 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. (Omit explanations.) E3-11. (Prepare Financial Statements) (LO 4) The adjusted trial balance of Anderson Cooper Co. as of December 31, 2017 contains the following. ANDERSON COOPER Co. ADJUSTED TRIAL BALANCE DECEMBER 31, 2017 $19,472 6,920 2,280 18,050 Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense $ 4,895 5,700 5,472 20,000 11,310 3,000 11,590 6,840 2,260 145 83 Interest Expense Interest Payable 83 $59,050 $59,050 Instructions (a) Prepare an income statement. (b) Prepare a statement of retained earnings (e) Prepare a classified balance sheet