LIST OF ACCOUNTS

Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Advertising supplies Advertising supplies expense Buildings Capital Car rental expense Cash Cost of sales Depreciation expense Dividends Drawings Equipment Freight-out Income tax expense Insurance expense Interest expense Interest payable Interest revenue Inventory Land Loss on disposal of plant assets Maintenance and repairs expense Miscellaneous expense Mortgage payable Notes payable Operating expenses Ordinary shares Petrol expense Prepaid advertising Prepaid insurance Prepaid rent Profit or Loss summary Property tax expense Property tax payable Rent expense Rent revenue Retained earnings Salaries expense Salaries payable Sales commissions expense Sales commissions payable Sales discounts Sales returns and allowances Sales revenue Service revenue Subscription revenue Supplies Supplies expense Ticket revenue Travel expense Unearned income Unearned rent revenue Unearned sales revenue Unearned service revenue Unearned subscriptions Unearned ticket revenue Utilities expense Utilities payable Wages expense

Question 3 The ledger of Welch Rental Agency on 31 March of the current year includes the following selected accounts before adjusting entries have been prepared. Credit Debit $3,600 2,800 25,000 Prepaid insurance Supplies Equipment Accumulated depreciation equipment Notes payable Unearned rent Rent revenue Interest expense Wage expense $8,400 20,000 9,900 60,000 -0- 14,000 An analysis of the accounts shows the following: 1. 2. 3. 4. 5. The equipment depreciates $450 per month. One-third of the unearned rent was earned during the quarter. Interest of $500 is accrued on the notes payable. Supplies on hand total $900. Insurance expense at the rate of $400 per month. Required Prepare the adjusting entries at 31 March, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation expense, Insurance expense, Interest payable, and Supplies expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Accounts Debit Credit No. Date 1. Mar. 31 2. Mar. 31 3. Mar. 31 4. Mar. 31 5. Mar. 31