Question
The ledger of Teal Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debits:
The ledger of Teal Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debits: Prepaid Insurance $3,816 Supplies 2,955 Equipment 25,530 Salaries and Wages Expense 15,050. Credits: Accumulated Depreciation-Equipment $8,094 Notes Payable 18,730 Unearned Rent Revenue 8,880 Rent Revenue 55,860 Interest Expense 0
An analysis of the accounts shows the following.
1. The equipment depreciates $249 per month.
2. One-third of the unearned rent was earned as revenue during the quarter.
3. Interest of $480 is accrued on the notes payable.
4. Supplies on hand total $701.
5. Insurance expires at the rate of $318 per month.
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 Expenses.
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