The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
DebitCreditPrepaid Insurance$3,880Supplies2,830Equipment29,110Accumulated Depreciation—Equipment$8,570Notes Payable23,120Unearned Rent Revenue7,200Rent Revenue66,530Interest Expense–0–Salaries and Wages Expense23,510
An analysis of the accounts shows the following.
1.The equipment depreciates $310per month.2.One-third of the unearned rent was earned during the quarter.3.Interest of $580is accrued on the notes payable.4.Supplies on hand total $700.5.Insurance expires at the rate of $370per month.
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.Account Titles and ExplanationDebitCredit188.8.131.52.5.