Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The ledger of Pina Colada Corp. on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been

image text in transcribedimage text in transcribed

The ledger of Pina Colada Corp. on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Credit Debit $ 1,800 3,400 18,750 Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $ 8,600 21,000 9,900 61,000 0 11,000 An analysis of the accounts shows the following. 1. 2. 3. The equipment depreciates $300 per month. One-third of the unearned rent revenue was earned during the quarter. Interest totaling $525 is accrued on the notes payable for the quarter. Supplies on hand total $570. Insurance expires at the rate of $100 per month. 4. 5. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles Debit Credit 1. Mar. 31 Depreciation Expense Accumulated Depreciation-Equipment 2. Mar. 31 Unearned Rent Revenue Rent Revenue 3. Mar. 31 Interest Expense Interest Payable 4. Mar. 31 Supplies Expense Supplies 5. Mar. 31 Insurance Expense Prepaid Insurance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Beat The IRS At Its Own Game Strategies To Avoid And Fight An Audit

Authors: Amir D Aczel

1st Edition

1568580487, 978-1568580487

More Books

Students also viewed these Accounting questions