Problem 1 The ledger of Passehl Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation-Equipment $ 8,400 Notes Payable 20,000 Unearned Rent Revenue 10,200 Rent Revenue 60,000 Interest Expense -0- Salaries and Wages Expense 14,000 An analysis of the accounts shows the following 1. The equipment depreciates $175 per month 2. One-fourth of the unearned rent revenue was earned during the quarter. 3. Interest of $300 is accrued on the notes payable. 4. Supplies on hand total $800. 5. Insurance expires at the rate of $120 per month. 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. (10 points)