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Question - The ledger of Blossom, Inc. on March 31, 2020, includes the following selected accounts before adjusting entries.
Debit Credit
Prepaid Insurance 2,400
Supplies 2,300
Equipment 30,200
Unearned Service Revenue 8,600
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $500 per month.
2. Supplies on hand total $1,700.
3. The equipment depreciates $500 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.
Required - Prepare the adjusting entries for the month of March.
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