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The ledger of Howard Rental Agency on September 30 of the current year includes selected accounts below before adjusting entries have been prepared. Supplies: Debit:

The ledger of Howard Rental Agency on September 30 of the current year includes selected accounts below before adjusting entries have been prepared.

Supplies: Debit: 6,000

Prepaid Insurance: Debit: 7,000

Equipment:Debit: 50,000

Accumulated Depreciation-Equipment:Credit:16,800

Notes Payable:Credit: 40,000

Unearned Rent Revenue:Credit:24,800

Rent Revenue:Credit:120,000

Interest Expense:Debit:0

Salaries and Wages Expense:Debit:28,000

An analysis of the accounts show the following.

1). The equipment depreciates 560 per month.

2). Half of the unearned rent revenue was earned from September 30 to date.

3). Interest of 800 is accrued on the notes payable.

4). Supplies on hand total 1,700

5). Insurance expires at the rate of 800 per month.

Prepare the adjusting entries at December 31 assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable and Supplies.

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