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The ledger of Marco Rentals on 30 June 2019 includes the followingselectedaccounts before adjusting entries have been prepared: Debit $ Credit $ Prepaid insurance 28080
The ledger of Marco Rentals on 30 June 2019 includes the followingselectedaccounts before adjusting entries have been prepared:
Debit $ Credit $
Prepaid insurance 28080
Supplies 16800
Equipment 195000
Accumulated depreciationequipment 39000
Bank loan 156000
Rent revenue received in advance 72540
Rent revenue 468000
Wages expenses 109200
An analysis of the accounts shows the following adjustments that need to be made:
- The equipment depreciates $3250 per month.
- The rent revenue received in advance was for 9 months commencing 1 June.
- Interest of $1950 is accrued on the bank loan.
- Supplies on hand total $5600.
- The benefits of prepaid insurance expire at the rate of $2340 per month.
Required
a)Prepare the adjusting entries at 30 June 2019.(12 Marks)
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