Prepare the adjusting entries at march 31

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Reference no: EM1313612

Preparation of journal entries for depreciation, unearned and accrued transactions.

1. 5 (Adjusting Entries) The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

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

An analysis of the accounts shows the following.
1) The equipment depreciates $250 per month
2) One third of the unearned rent was earned during the first quarter.
3) Interest of $500 is accrued in notes payable.
4) Supplies on hand total $850
5) Insurance expires at the rate of $300 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 Supplies expense. (Omit explanations.)

Reference no: EM1313612

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