Problem I. E3.5 on page 3-56 The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Prepaid Insurance $3,600 Supplies 2,800 Equipment 25,000 Accumulated depreciation- Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest expense Salaries and wages expenses 0 14,000 Credit $8,400 20,000 9,300 60,000 An analysis of the accounts shows the following. 1. The equipment depreciation $250 per month 2. One-third of the unearned revenue was recognized as revenue during the quarter 3. Interest of $500 is accrued on the notes payable 4. Supplies on hand total $850 5. Insurance expires at the rate of $300 per month. Instructions: Prepare adjusting entries at March 31, assuming that entries are made quarterly. Additional accounts are depreciation expense, insurance expense, interest payable, and supplies expense. (Omit explanations.)