The ledger of Easy Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

An analysis of the accounts shows the following:
1. The equipment depreciates \(\$ 500\) per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of \(\$ 600\) is accrued on the notes payable.
4. Supplies on hand total \(\$ 850\).
5. Insurance expires at the rate of \(\$ 200\) per month.
\section*{Instructions}
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.

Transcribed Image Text:

Debit Credit Prepaid Insurance $ 3,600 Supplies Equipment 2,800 25,000 Accumulated Depreciation- Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Wage Expense $ 8,400 20,000 9,300 60,000 -0- 14,000