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. Debit
The ledger of Teal Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
Debit | Credit |
Prepaid Insurance | $3,564 |
Supplies | 2,662 |
Equipment | 26,270 |
Accumulated Depreciation-Equipment | $7,994 |
Notes Payable | 18,830 |
Unearned Rent Revenue | 5,940 |
Rent Revenue | 58,640 |
Interest Expense | 0 |
Salaries and Wages Expense | 14,910 |
An analysis of the accounts shows the following.
1. | The equipment depreciates $272per month. |
2. | One-third of the unearned rent was earned as revenue during the quarter. |
3. | Interest of $500is accrued on the notes payable. |
4. | Supplies on hand total $599. |
5. | Insurance expires at the rate of $297per 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.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
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