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last try 2. Prepare adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expensed; Interest Payable;
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2. Prepare adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expensed; Interest Payable; and Supplies Expense. The Ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation- Equipment 8,400 Unearned Rent Revenue 20,000 Rent Revenue 6,300 Retained Earnings 60,000 Interest Expense -0Wage Expense 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $250/month. 2. One-third of the unearned rent was earned during the quarter. 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $650. 5. Insurance expires at the rate of $300 per monthStep by Step Solution
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