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

An analysis of the accounts shows the following.
1. The equipment depreciates $280 per month.
2. Half of the unearned rent revenue was earned during the quarter.
3. Interest of $440 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $400 per month.

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 SuppliesExpense.

Transcribed Image Text:

Debits 3,600 3,000 25,000 Credits Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Wage Expense 8,400 20,000 10,200 60,000 0 14,000