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Instructions For each item, indicate (1) the type of adjustment (prepaid expense, wamed revenue, accrued revenue, or accrued expense) and (2) the status of the

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Instructions For each item, indicate (1) the type of adjustment (prepaid expense, wamed revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). tries from 94-9 The ledger of Howard Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equipment Notes Payable Uneared Rent Revenue Debit Credit $ 3,000 3,600 25,000- $ 8,400 20,000 12,400 60,000 Ret Reverse 14.000 Interest Expense Salaries and Wages Expense An analysis of the accounts shows the following 1. The equipment depreciates $280 per month 2. Half of the uncanned rent revenue was earned during the quarter 3. Interest of $400 is accrued on the notes payable. 4. Supplies on hand total 5850. 5. Insurance expires at the rate of $400 per month Instruction 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 EXERCISE 4-9 Prepare Adjusting Entries Date GENERAL JOURNAL Account Titles ADJUSTING ENTRIES Debit Credit 1. Mar. 31 2. Mar. 31 3. Mar. 31 Continued on the following page CHAPTER 4 Page 12 EXERCISE 4-9 continued GENERAL JOURNAL Account Titles ADJUSTING ENTRIES Debit Credit Date 4. Mar. 31 5. Mar. 31 Check figure: Total debits = $10,790 FYCOT ar

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