Instructions

Prepare the adjusting entries on March 31, assuming that adjusting entries are made quarterly. Additional accounts needed are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense etc.

The trial balance of Max Company, Inc, at the end of its quarterly period is as follows: MAX COMPANY, INC. Trial Balance December 31, 2013 Debit Credit $4,500 5,400 Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable 30,000 $ 8,000 14,000 Unearned Rent Revenue 10,200 Rent Revenue 30,000 0 Interest Expense Salaries and Wages Expense- Totals - 22,000 $ 62,200 $62,200 Additional Information 1. The equipment depreciates $1000 per month 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest of $400 is accrued on the notes payable. 4. Supplies on hand total $1050. 5. Insurance ekpires at the rate of $400 per month 6. Eamed but unpaid salaries, $900