Question
The ledger of Bourque Rental Agency on March 31, 2021, includes the following selected accounts before preparing quarterly adjusting entries: DebitCredit Supplies$13,400Prepaid Insurance3,360Equipment37,440Accumulated DepreciationEquipment$9,360Unearned Revenue9,600Notes
The ledger of Bourque Rental Agency on March 31, 2021, includes the following selected accounts before preparing quarterly adjusting entries:
DebitCreditSupplies$13,400Prepaid Insurance3,360Equipment37,440Accumulated DepreciationEquipment$9,360Unearned Revenue9,600Notes Payable34,800Rent Revenue29,100Salaries Expense13,400
An analysis of the accounts shows the following:
1.The equipment has a four-year useful life.2.One-quarter of the unearned rent is still unearned on March 31, 2021.3.The note payable has an interest rate of 6%. Interest is paid every June 30 and December 31.4.Supplies on hand at March 31 total $830.5.The one-year insurance policy was purchased on January 1, 2021.6.As at March 31, a tenant owed Bourque $860 for the month of March.
Prepare the quarterly adjusting entries required at March 31, 2021
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