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The ledger of Sagovic Rental Agency on March 31 of the current year includes the selected accounts on page 206 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 $400 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 Supplies Expense.
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