Q14 The ledger of IBM on March 31, 2017, includes these selected accounts before adjusti entries are prepared. Debit Credit Prepaid Insurance $3,600 Supplies $2,600 Equip ment S 25,000 Accumulated Depreciation-Equipment $5,000 Unearned Service Revenue $9,200 Insurance expires at the rate of $200 per month 1. Supplies on hand total $900. 2. 3. The equipment depreciates $400 a month. 4. During March, services were performed for $6,000 of the unearned service rev reported Which of the following statement correct? 7 A. Adjusting entry for the prepaid insurance in the month of March is Prepaid Insurance 200 Insurance Expense 200 B. Adjusting entry for the depreciation expense in the month of March is Accumulated Depreciation 400 Depreciation Expense 400 C. Adjusting entry for the supplies expense in the month of March is Supplies Expense 1,700 Supplies 1,700 D. Adjusting entry for the supplies expense in the month of March is Service Revenue 6,000 Unearned Service Revenue 6,000