The ledger of Rainy Day Umbrella Ltd. 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 depreciation is $3 50 per month.
2. One half of the unearned rent was earned during the quarter.
3. Interest of $300 has accrued on the notes payable.
4. Supplies on hand total $950.
5. Insurance expires at the rate ofS300 per month.
Instructions
(a) 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.
(b) If the notes payable have been outstanding since January 1 of the current year, what is the annual interest rate on the note payable?

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